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30-01-2026 14:22
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Binance shifts SAFU fund to Bitcoin as user protection strategy evolves
Binance plans to convert its $1 billion Secure Asset Fund for Users into Bitcoin, signalling a change in how the exchange structures its emergency protection reserve during a volatile market phase.
The move was outlined in an open letter posted on X and is set to be completed over the next 30 days.
Once finished, the SAFU fund will be fully held in Bitcoin rather than a mix of stablecoins and other crypto assets.
The exchange says the decision reflects long-term conviction in Bitcoin’s role within the crypto ecosystem, rather than a reaction to short-term price movements.
SAFU fund overhaul
The SAFU fund, launched in 2018, was created to protect users in cases such as security breaches or unexpected platform losses.
Until now, the reserve has been maintained using a combination of dollar-pegged stablecoins and major cryptocurrencies.
Binance said the fund will be monitored continuously, with a clear threshold in place. If Bitcoin price movements cause the SAFU balance to fall below $800 million, the exchange plans to replenish it to $1 billion.
The exchange described Bitcoin as the foundational asset of the crypto market and said holding SAFU entirely in BTC aligns the fund with the long-term trajectory of the sector.
Why Bitcoin now
Binance framed the shift as a strategic repositioning rather than a defensive move, noting that Bitcoin’s liquidity and global recognition make it suitable for a reserve asset.
By moving away from stablecoins, Binance is also reducing its exposure to assets that are tied to traditional currencies and regulatory oversight.
The exchange said the change reflects confidence in Bitcoin’s durability across market cycles and its central role in the broader crypto economy.
The conversion will take place gradually over the 30-day window, allowing Binance to manage execution risk and minimise market disruption while rebalancing the fund.
Scale and reserves
The SAFU announcement arrives alongside fresh disclosures about Binance’s scale. The exchange said it reached 300 million users in 2025 and processed $34 trillion in trading volume over the year.
Binance also reported proof-of-reserves totalling $162.8 billion across 45 crypto assets, a figure it says underscores its liquidity position.
These metrics are part of Binance’s broader effort to highlight balance sheet strength and operational reach as competition intensifies among global exchanges.
Regulation and market signals
Beyond the SAFU shift, Binance continues to navigate regulatory expansion and market positioning. The exchange recently applied for an EU Markets in Crypto Assets (MiCA) licence in Greece, which would enable unified operations across the bloc.
Executives have also said Binance is taking a cautious approach to any potential return to the US market.
At the same time, Binance is exploring the reintroduction of tokenised equities, a product it suspended in 2021.
In public comments at Davos, Binance founder Changpeng Zhao said Bitcoin could enter a supercycle in 2026, potentially moving beyond the traditional four-year halving pattern as adoption widens and policy attitudes shift.
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30-01-2026 14:22