Binance plans to convert its $1 billion SAFU fund to BTC.

SAFU Transformation Plan

Binance has announced its intention to convert a significant portion — up to $1 billion — of its Secure Asset Fund for Users (SAFU) into Bitcoin (BTC) , according to a statement released by CEO Richard Teng in January 2026 and confirmed through Binance's official channels.

• Total SAFU size: Approximately $1.2–1.3 billion (as of the latest confirmation in Q4 2025)

• Proposed BTC allocation: Up to $1 billion ( approximately 75–80% of the total fund )

• Transition timeframe: Implemented in phases over 3–6 months (Q1–Q2 2026) to minimize market impact.

• Remaining assets: Will be held in the form of cash equivalents, short-term Treasury bonds, and high-quality stablecoins (primarily old USDC and BUSD reserves ).

• Custody: BTC will be stored offline using Binance's multi-signature and institutional-level geographic distribution system.

This move marks the first time one of the world's largest cryptocurrency exchanges has publicly committed to holding the majority of its emergency reserve fund in BTC instead of traditional fiat currency or stablecoins.

Historical context of SAFU

The SAFU fund was established in 2018 following the collapse of Mt. Gox and the initial exchange hacks. Its funding primarily comes from a portion of Binance's trading fees (a 10% allocation in the past) and has been used sparingly—most notably during the collapse of FTX (2022) to offset user losses on positions linked to Binance. To date, SAFU is held almost entirely in:

• Cash and cash equivalents

• Short-term US Treasury bonds

• Stablecoins (USDC, older version of BUSD)

The shift to Bitcoin represents a philosophical evolution: BTC is seen not only as an asset for users, but also as a core reserve asset for the exchange itself.

With a size of approximately $1 billion , SAFU has become one of the largest self-insurance mechanisms in the cryptocurrency industry, playing a crucial role in maintaining user confidence during periods of market volatility.

Why did Binance change its strategy?

The complete conversion of SAFU to Bitcoin reflects several strategic considerations. First, Bitcoin offers abundant global liquidity, allowing Binance to raise large amounts of capital quickly without relying on counterparties. Second, BTC has no issuer risk, unlike stablecoins or other crypto assets that rely on third-party reserve management.

In a context where regulations on stablecoins, access to banking, and counterparty risks are constantly under intense scrutiny, Bitcoin represents a self-sustaining reserve asset that aligns with the core principles of cryptocurrencies.

Holding SAFU as a stablecoin prioritizes nominal stability, but is dependent on the fiat currency system and issuers. Switching to Bitcoin would focus on scarcity, censorship resistance, and long-term value preservation – even at the cost of short-term volatility.

Disclaimer: The information presented in this article is the author's personal opinion in the field of cryptocurrency. This is not financial or investment advice. All investment decisions should be based on careful consideration of your personal portfolio and risk tolerance. The views expressed in this article do not represent the official stance of the platform. We recommend that readers conduct their own research and consult with experts before making any investment decisions.

Compiled and analyzed by HCCVenture

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