In a historic move signaling deep institutional conviction, cryptocurrency exchange giant Binance has announced it will convert its entire $1 billion Secure Asset Fund for Users (SAFU) from stablecoin holdings to Bitcoin (BTC). The exchange disclosed the plan in an open letter on January 29, 2026, stating the conversion will be executed gradually over the next 30 days.
The SAFU fund, established in 2018 as an emergency insurance reserve to protect users from extreme events like hacks, was previously held in stablecoins such as BUSD and USDT. Binance's new strategy represents a profound shift, positioning Bitcoin as the sole backing asset for this critical safety net. The company framed the decision as a "long-term bet on bitcoin as crypto’s core asset," reflecting a belief in its role as a foundational reserve asset over fiat-pegged alternatives.
A key component of the new structure is a built-in replenishment mechanism. Binance has committed that if market volatility causes the fund's BTC-denominated value to drop below $800 million, the exchange will inject additional Bitcoin to restore the total value to the $1 billion floor. This mechanism is designed to ensure the fund's protective capacity remains intact while demonstrating a price-agnostic, long-term commitment.
The move carries significant implications for market structure. The phased acquisition of up to $1 billion worth of Bitcoin creates a substantial source of institutional demand, potentially providing underlying buy-side pressure. Analysts note the decision mirrors actions by corporations like MicroStrategy and nation-states, but is unique in its application to a user protection fund—a pot of capital earmarked for ultimate security and reliability.
Binance's announcement comes amid broader expansion and regulatory efforts. The exchange reported reaching 300 million users in 2025 with $34 trillion in trading volume, and holds proof-of-reserves totaling $162.8 billion. Founder Changpeng "CZ" Zhao recently suggested Bitcoin could enter a "supercycle" in 2026. Regulatorily, Binance is pursuing an EU MiCA license in Greece and cautiously exploring a potential return to the U.S. market.
