Binance said it will gradually convert about $1 billion of assets held in its Secure Asset Fund for Users, or SAFU, from stablecoins into Bitcoin over a 30-day period, shifting the emergency reserve toward a primarily Bitcoin-denominated structure.

The plan was disclosed in an open letter to users published on Jan. 29, 2026 on the company’s official blog. In that letter, Binance said the conversion would be phased to avoid disrupting markets and that the fund’s value would be monitored and replenished if needed.

SAFU is an internal protection reserve created by Binance in 2018 to compensate users in extreme events such as hacks or major system failures. It is funded from a portion of trading fees and is kept separate from regular customer deposits.

Why Binance Is Making the Change

In the announcement, Binance described Bitcoin as a long-term reserve asset for the crypto industry and said holding the fund in BTC would reduce reliance on any single fiat-backed stablecoin issuer.

The company also said Bitcoin’s role as the largest and most liquid crypto asset made it suitable as a core backstop asset, while acknowledging that BTC price volatility means the dollar value of the fund will fluctuate.

To manage that volatility, Binance said it would regularly check the fund’s market value and top it back up if it falls below $800 million, restoring it to the $1 billion target level.

How the Conversion Will Work

The purchases are expected to be spread out across roughly a month rather than executed as a single large trade. Binance did not disclose the exact execution method but said the gradual approach is intended to limit short-term market impact.

Because the SAFU fund is distinct from user balances, the conversion does not involve moving or risking customer deposits. Binance emphasized that the fund’s purpose remains user protection, not investment or speculation.

What Changes and What Doesn’t

What changes:

• The asset mix of the SAFU reserve, from stablecoins to Bitcoin.

What stays the same:

• The SAFU fund remains an emergency buffer for user protection.
• It continues to be funded by Binance revenues, not by customer assets.
• The target size of the fund remains $1 billion in dollar terms, with rebalancing if needed.

Potential Market Effects

A phased $1 billion Bitcoin purchase represents meaningful demand, but the staggered schedule reduces the chance of sharp, one-day price swings compared with a lump-sum buy.

Any impact on Bitcoin’s price will depend on broader market conditions and how quickly the conversions are executed.

The Bigger Picture

The move reflects a shift in how a major crypto exchange is structuring its internal safety buffer: away from dollar-pegged tokens and toward the original cryptocurrency itself.

In practical terms, Binance is treating Bitcoin as a long-term reserve asset for its user protection fund, while accepting that its dollar value will move up and down with the market and committing to replenish it if it drops too far.

As of the announcement, the conversion plan is active and expected to complete within about 30 days, with further updates to be communicated through Binance’s official channels.

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