Binance announced plans to convert the full $1 billion stablecoin balance of its Secure Asset Fund for Users (SAFU) into Bitcoin over the next 30 days, marking a significant shift in how the exchange manages its long-standing emergency reserve.
The decision arrives during a period of heightened volatility across digital asset markets and broader financial sectors. Bitcoin recently fell to around $81,000, its lowest level since late 2024, while liquidation data shows roughly $1.7 billion in leveraged crypto positions closed within a 24-hour window, according to CoinGlass.
In an open letter published Friday, Binance framed the move as part of a long-term strategy focused on industry resilience rather than short-term market conditions.
“Guided by our belief that BTC serves as the core asset in the crypto ecosystem and represents long-term value, Binance will continue to stand alongside our industry through market cycles and uncertainty,” the exchange wrote.
🚨 JUST IN: @Binance will convert its SAFU fund's ~$1B USDT reserves into $BTC over the next 30 days.
— HodlFM (@Hodl_fm) January 30, 2026
Earlier, the exchange and its former CEO @cz_binance faced a wave of criticism, user outflows, and multiple calls for a boycott. pic.twitter.com/sdJNHoUtPt
SAFU shifts from stability to conviction
SAFU was launched in July 2018 as an insurance-style reserve designed to protect users in the event of hacks, operational failures, or unexpected incidents. Binance initially funded the pool by allocating a portion of trading fees, with the goal of building a sizable and reliable backstop for customer assets.
As of January 2026, the SAFU wallet holds approximately $1 billion in USDC. Part of these funds also serves as capital reserves tied to Binance’s regulatory obligations within the Abu Dhabi Global Markets framework. The fund remains held and managed by Nest Clearing and Custody Limited, a recognized clearing house regulated by the ADGM Financial Services Regulatory Authority.
Until now, SAFU relied primarily on stable assets to preserve predictable coverage during market turbulence. Binance acknowledged that moving the fund into Bitcoin introduces price volatility, but said safeguards remain in place.
“If the fund’s market value falls below $800 million due to BTC price fluctuations, Binance will rebalance the fund to restore its value to $1 billion,” the exchange wrote.
Binance also committed to regular audits and ongoing monitoring of the fund’s market value.
Pressure builds amid criticism and market losses
The announcement lands during a tense moment for Binance. Criticism has intensified across social platforms over the exchange’s token listing practices, particularly tied to its Binance Alpha program. Some market participants have questioned listing standards after several newly listed tokens suffered sharp declines shortly after launch.
The broader market environment has added further strain. Bitcoin’s recent drop coincided with rotations into gold and silver, geopolitical developments tied to U.S. tariff announcements, and continued outflows from spot Bitcoin exchange-traded funds. Ether, XRP, and Solana also recorded daily losses near or above 8%, according to TradingView data.
Against this backdrop, Binance positioned the SAFU conversion as a confidence signal rather than a defensive move.
“When questions and concerns arise, we respond with action,” Binance said in its statement. “Through these efforts, we aim to support the industry’s long-term, sustainable growth.”
Risk control and enforcement efforts highlighted
Alongside the SAFU update, Binance disclosed a series of operational metrics from 2025 tied to user protection and compliance. The exchange said it assisted users in 38,648 incorrect deposit recovery cases during the year, totaling $48 million. Cumulative recoveries now exceed $1.09 billion.
Binance also reported assisting 5.4 million users with scam risk identification, which it said helped prevent approximately $6.69 billion in potential losses. In cooperation with global law enforcement agencies, Binance said authorities confiscated $131 million in illicit funds linked to illegal activity.
The exchange framed these figures as evidence of maturing governance standards across the sector, as expectations around risk management and accountability continue to rise.
A symbolic return to crypto-native reserves
The phrase “Funds are SAFU” holds symbolic weight within the Binance community. It traces back to a 2018 incident when then-CEO Changpeng Zhao reassured users during unscheduled maintenance. The phrase later evolved into a widely shared meme, reinforcing the fund’s role as a trust anchor during moments of stress.
By shifting SAFU entirely into Bitcoin, Binance departs from a stability-first reserve model in favor of a crypto-native approach centered on its stated belief in Bitcoin’s long-term role.
Whether the move reassures users or raises new concerns may depend less on price action and more on execution. Binance emphasized that transparency, audits, and rebalancing mechanisms remain central to the fund’s mandate.
“Binance will continue to respond to market concerns with action,” the exchange said, reiterating its commitment to openness and long-term industry participation.
Gunel Ismayilova
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