Binance says it will convert $1 billion of its SAFU user-protection fund from stablecoins into Bitcoin over the next 30 days, framing the move as a long-term commitment to the industry during heightened volatility. The exchange also outlined a rebalancing plan designed to keep the fund’s value near the $1 billion target even if BTC prices swing.
The announcement quickly drew responses across the crypto market, including from TRON founder Justin Sun, who said TRON plans to increase its Bitcoin holdings as well—an echo of prior “confidence signaling” playbooks used during past market stress events.
Key Takeaways
- Binance says it will convert SAFU’s $1B stablecoin reserves into BTC within 30 days.
- The exchange plans to rebalance if the fund’s market value falls below $800M due to BTC price moves.
- Justin Sun said TRON will boost its BTC holdings in response to Binance’s move.
- The shift effectively reverses Binance’s 2024 decision to hold SAFU fully in USDC for stability.
- The announcement revives comparisons to post-FTX confidence measures like proof-of-reserves disclosures.
Binance Details a 30-Day BTC Conversion Plan for SAFU
In a January 30, 2026 blog post titled an open letter to the crypto community, Binance said it will convert the SAFU fund’s $1 billion stablecoin reserves into Bitcoin reserves and aims to complete the transition within 30 days. Binance described BTC as a core asset for the crypto ecosystem and positioned the decision as part of a broader effort to respond to market concerns with visible action.
Binance also outlined a safeguard: if BTC volatility causes the fund’s market value to drop below $800 million, the exchange said it will rebalance the SAFU fund to restore its value to the $1 billion target. The intent, based on Binance’s wording, is to keep the user-protection backstop sized consistently while changing what it is held in.
What SAFU Is and Why Its Composition Matters
SAFU, short for the Secure Asset Fund for Users, is Binance’s emergency insurance-style fund meant to protect users in extreme situations tied to platform incidents. The fund is widely followed because it is one of the clearest, recurring signals Binance provides about how it thinks about user protection, reserves, and operational risk.
In Binance Academy’s glossary entry on SAFU, the company describes the fund as having been established in 2018 and grown using a portion of trading fees. The same entry notes that, as of January 2026, the SAFU wallet comprised 1 billion USDC—context that helps explain why today’s announcement is framed as a conversion from stablecoin reserves into Bitcoin reserves rather than a net-new injection of capital.
A Reversal From the 2024 “All-USDC” SAFU Update
The move is notable because Binance previously prioritized stability over volatility for SAFU. In an April 18, 2024 Binance blog update, the exchange said it was transferring 100% of SAFU’s assets to USDC, describing the rationale as improving reliability and keeping the fund stable at around $1 billion.
With the new plan, Binance is effectively trading that stablecoin-denominated steadiness for Bitcoin exposure—while attempting to manage the volatility risk through active monitoring and rebalancing. For traders and market observers, that structure matters: it implies ongoing BTC buys during the conversion window, plus potential incremental BTC purchases if drawdowns push the fund below Binance’s stated threshold.