Binance has announced a big change to how it protects users in times of crisis.
The exchange says it plans to convert its $1 billion SAFU fund entirely into Bitcoin, moving away from stablecoins and dollar-pegged assets. Binance describes the move as a long-term vote of confidence in Bitcoin, not a reaction to short-term market swings.
The plan was shared in an open letter posted on X on January 29. Binance said the conversion will happen gradually over the next 30 days, after which the SAFU fund will be held fully in Bitcoin.
Why Binance is making the move
According to Binance, Bitcoin remains the core asset of the crypto ecosystem, and holding SAFU in BTC better reflects how the company views the future of the market.
To manage volatility, the fund will be rebalanced based on market value. If Bitcoin’s price drops and the SAFU fund falls below $800 million, Binance said it will add more funds to bring the total back up to $1 billion.
The exchange stressed that this strategy is about long-term strength, not short-term price action.
What SAFU is for
SAFU — short for Secure Asset Fund for Users — was launched in 2018 as an emergency insurance fund. Its purpose is to protect users in situations like hacks or unexpected platform losses.
Until now, the fund has been held in a mix of stablecoins and major cryptocurrencies. This shift marks a clear change in how Binance backs that protection.
Bigger picture for Binance
The announcement comes as Binance continues to expand globally. The company says it reached 300 million users in 2025 and processed $34 trillion in trading volume during the year. It also reported $162.8 billion in proof-of-reserves spread across 45 different crypto assets.
Speaking recently at Davos, Binance founder Changpeng “CZ” Zhao said Bitcoin could enter a “supercycle” in 2026, possibly breaking away from the traditional four-year halving pattern as adoption grows and regulations become clearer. He also noted that Binance is talking with governments about areas like asset tokenization.
On the regulatory side, Binance has applied for an EU MiCA license in Greece, which would allow it to operate across the European Union under a single framework. The company is also taking a cautious stance on returning to the U.S. market, while exploring the idea of bringing back tokenized equities, a product it paused back in 2021.
For Binance, shifting SAFU fully into Bitcoin sends a clear message: the company sees BTC not just as another asset, but as the backbone of the crypto market going forward.
