Binance has announced plans to convert the Secure Asset Fund for Users SAFU reserves worth $1 billion from stablecoins into Bitcoin over the next 30 days, marking a notable shift in how the world’s largest crypto exchange manages user protection funds. The SAFU fund, created in 2018, was designed to protect users during extreme market events and has historically been held primarily in stablecoins to reduce exposure to volatility. In an open letter to the crypto community, Binance said the move reflects its view of Bitcoin as a core asset within the digital asset ecosystem. The exchange stated it is prepared to manage market fluctuations while supporting Bitcoin’s long-term role, signaling increased confidence in holding reserves directly in the largest cryptocurrency rather than dollar-linked assets traditionally viewed as safer during periods of stress.
The planned conversion represents a strategic shift in how Binance balances stability and long-term positioning. By reallocating SAFU reserves into Bitcoin, the exchange is increasing direct exposure to price movements while emphasizing conviction in Bitcoin’s resilience and liquidity. Binance said it will actively monitor both the SAFU fund and Bitcoin’s market price throughout the transition. If volatility causes the fund’s value to fall below $800 million, the company said it would add additional Bitcoin to restore the fund to its $1 billion target. This mechanism is intended to ensure continued user protection while allowing the reserve structure to evolve. Binance framed the move as part of a broader effort to align its internal safeguards with assets it believes best represent the foundation of the crypto market, even as regulators and users continue to scrutinize how exchanges manage risk and transparency.
The SAFU decision comes as Binance highlights progress on accountability measures across its platform. The exchange said that by late 2025, it had verified approximately $162.8 billion in user assets through its Proof of Reserves system, covering 45 different asset categories. At the same time, the crypto sector remains under pressure to strengthen governance and operational standards following a series of security incidents and market disruptions. Increased attention has been placed on how exchanges prepare for extreme scenarios and maintain trust during volatile periods. By shifting SAFU reserves toward Bitcoin, Binance appears to be positioning the fund as both a protection mechanism and a statement on long-term asset confidence. The move underscores a growing divide within the industry between reliance on stablecoins for safety and a renewed focus on Bitcoin as the primary reserve asset in crypto markets.
