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Rizwan Ansari
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Sohrab KhawasSohrab is a passionate cryptocurrency news writer with over five years of experience covering the industry. He keeps a keen interest in blockchain technology and its potential to revolutionize finance. Whether he's trading or writing, Sohrab always keeps his finger on the pulse of the crypto world, using his expertise to deliver informative and engaging articles that educate and inspire. When he's not analyzing the markets, Sohrab indulges in his hobbies of graphic design, minimal design or listening to his favorite hip-hop tunes.
- Jan 30, 2026 06:57 UTC
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Binance to Convert Entire $1B SAFU Fund Into Bitcoin Amid Market Volatility
Binance plans to convert its entire $1B SAFU reserve from stablecoins into Bitcoin, signaling long-term confidence in BTC despite ongoing market volatility.
To manage risk, Binance will top up SAFU if it falls below $800M, effectively buying Bitcoin on dips to keep user protection intact.
Binance, the world’s largest cryptocurrency exchange, has announced major plans to convert its entire $1 billion to the Secure Asset Fund for Users (SAFU) reserve from stablecoins into Bitcoin.
This move highlights the exchange’s long-term confidence in Bitcoin and comes at a time when crypto markets remain highly volatile.
Binance Converts $1B SAFU Fund to Bitcoin
In a recent open letter to the crypto community, Binance says it plans to gradually convert the entire $1 billion Secure Asset Fund for Users (SAFU) from stablecoins into Bitcoin. The conversion is expected to be completed within 30 days of the announcement.
The SAFU was created in July 2018 after a major security breach. Since then, it has acted as an emergency safety net for users, funded through a portion of Binance’s spot trading fees.
However, the fund has traditionally been held in stable assets to ensure quick access during crises.
Binance To Buy The Dip, When BTC Price Drops
Binance exchange explained that it now views Bitcoin as the most reliable long-term store of value in the crypto ecosystem.
Therefore, to manage risk, Binance introduced a clear safeguard. If the value of the SAFU fund drops below $800 million due to Bitcoin price swings, the company will add more Bitcoin to bring the fund to $1 billion.
This approach means Binance will buy Bitcoin during dips to maintain protection levels.
Binance Show Strong Security Track Record
The move builds on Binance’s broader security efforts throughout 2025. During the year, the exchange helped recover $48 million across 38,648 cases of incorrect deposits. Binance also said it assisted 5.4 million users in identifying potential risks, preventing nearly $6.9 billion in scam-related losses.
In addition, Binance worked closely with global law enforcement agencies, leading to the seizure of $131 million in illicit funds.
By the end of 2025, Binance’s proof-of-reserves report showed user assets totaling $163 billion, fully backed across 45 different crypto assets.
Crypto Community Reacts Positively
The decision has been welcomed by many in the crypto space. Prominent Bitcoin investor Lark Davis called the move bullish, noting that converting $1 billion into Bitcoin is a major signal of confidence.
He compared Binance’s approach to the long-term Bitcoin accumulation strategy often associated with Michael Saylor.
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FAQs
Binance says Bitcoin offers stronger long-term value and resilience, making it a better reserve asset to protect users during extreme market events.
Binance set a safeguard: if SAFU drops below $800M, it will buy more Bitcoin to restore the fund to $1B.
The exchange plans to gradually complete the full conversion from stablecoins to Bitcoin within 30 days of the announcement.
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