- Binance will convert its $1 billion SAFU fund from stablecoins into Bitcoin over 30 days, changing its user protection mix.
- The exchange will top up the SAFU fund with Bitcoin if its value drops below $800 million due to market volatility.
Binance has announced a major change to how it manages its user protection reserves, stating it will move the Secure Asset Fund for Users (SAFU) from stablecoins into Bitcoin over the next 30 days. The exchange framed the move as a long-term strategic adjustment, increasing direct exposure to Bitcoin instead of dollar-pegged assets, at a time when risk controls across the crypto sector are under closer examination.
Binance shifts SAFU reserves from stablecoins to Bitcoin
In an open letter to the crypto community, Binance outlined plans to convert the SAFU Fund’s $1 billion stablecoin holdings into Bitcoin. The exchange described Bitcoin as a central asset in the digital asset landscape and said it is willing to manage related uncertainty in the market in order to support Bitcoin’s long-term role.
The SAFU Fund, created in 2018, is intended to protect users during severe market events or platform incidents. Until now, it has been primarily composed of stablecoins, a structure designed to reduce exposure to price swings and keep the fund’s value steady. The new strategy marks a clear departure from that approach, replacing dollar-linked stability with the potential volatility and upside of direct Bitcoin holdings.
By setting a 30-day window for the conversion, Binance has given itself a defined period to complete the shift without specifying a daily schedule or purchase pattern. The exchange did not describe any change to the fund’s purpose, but the asset mix will be fundamentally different once the transition from stablecoins to Bitcoin is complete.
Safeguards for SAFU value and Binance’s stated commitments
Alongside the conversion plan, Binance detailed how it intends to manage the SAFU Fund’s value as Bitcoin prices move. The exchange said it will track both Bitcoin’s market performance and the size of the SAFU reserves. If volatility causes the fund to fall below $800 million, Binance said it will inject additional Bitcoin until the overall balance returns to $1 billion.
In its letter, the exchange described the move as part of a long-term commitment to the crypto industry. Binance said it plans to keep working on related initiatives and will share further updates with the community over time. The company also pointed to a broader push for stronger standards across trading venues and service providers, referencing pressure on crypto platforms to raise their level of risk management, governance, and operational controls.
Binance highlighted its Proof of Reserves framework as part of that broader effort. According to the exchange, by late 2025 it had verified approximately $162.8 billion in user assets through that system. The Proof of Reserves process covered 45 different asset categories, indicating a wide scope of on-platform holdings that had been checked and reported.
Binance and sector-wide scrutiny after Trust Wallet incident
The timing of Binance’s SAFU conversion plan coincides with heightened scrutiny of how crypto businesses handle risk and security. Around a month before the announcement, Trust Wallet, a crypto wallet platform associated with Binance founder Changpeng Zhao, disclosed a security incident. That event resulted in losses of at least $7 million in digital assets.
Although the Binance communication about SAFU did not directly link the Bitcoin conversion to the Trust Wallet breach, the exchange acknowledged wider pressure across the sector to improve safeguards. The discussion of governance, risk management, and operational standards came against a backdrop of renewed concerns about how user funds are protected when incidents occur.
In this context, the decision to hold SAFU reserves in Bitcoin instead of stablecoins introduces a different risk profile for a fund designed as a backstop for users during extreme circumstances. The exchange has sought to offset that change by pledging to top up the fund if its value falls below $800 million, aiming to keep the headline figure at $1 billion regardless of Bitcoin price swings.
Conclusion
Binance’s decision to convert the SAFU Fund’s $1 billion stablecoin reserves into Bitcoin over 30 days marks a notable change in how it structures its user protection pool. The exchange has said it will maintain the fund at $1 billion by adding Bitcoin if volatility pushes the value below $800 million, and it has presented the move as part of a longer-term commitment to the industry. The announcement comes as crypto platforms face more intense scrutiny of their risk controls, following incidents such as the Trust Wallet security breach that led to at least $7 million in losses.
Disclaimer
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