Key highlights:
- Binance will complete the $1 billion SAFU fund conversion to Bitcoin within 30 days from January 30, 2026.
- The exchange implements an automatic rebalancing system to maintain fund protection even during Bitcoin price fluctuations.
- SAFU reserves will continue to meet regulatory requirements while supporting institutional confidence in crypto safety.
Binance, the world’s largest cryptocurrency exchange, announced a large-scale restructuring of its $1 billion SAFU (Secure Asset Fund for Users) reserves. The company will convert a significant portion of the fund from stablecoins into Bitcoin over the next 30 days.
The decision reflects Binance’s long-term strategy for developing the crypto industry and demonstrates management’s confidence in Bitcoin as a cornerstone of crypto reserves.
Rebalancing mechanism and protection against volatility
Binance’s SAFU fund will include an automatic rebalancing system that continuously monitors its market value. If Bitcoin’s price drops enough for SAFU’s total value to fall below $800 million, the exchange will restore the reserves to $1 billion.
This mechanism ensures that the fund maintains its protective functions even amid significant price swings. Binance commits to keeping sufficient reserves regardless of market conditions, providing ongoing security for users.
History and structure of the SAFU fund
The Secure Asset Fund for Users (SAFU) was created in July 2018 to protect Binance users in the event of emergencies such as hacker attacks, platform failures, or other unforeseen incidents.
SAFU is funded by deducting a percentage of Binance’s trading fees, initially about 10% of spot fees. As of January 2026, the fund held approximately 1 billion USDC.
A portion of SAFU is also used to meet regulatory requirements in the Abu Dhabi Global Market, with management handled by Nest Clearing and Custody Limited, a licensed clearing company under the supervision of the ADGM Financial Services Regulatory Authority.
Technical implementation
The fund’s assets are stored on publicly verifiable blockchain addresses. SAFU’s main Ethereum wallet is located at address 0x420ef1f25563593aF5FE3f9b9d3bC56a8bd8c104, ensuring transparency.
Converting the funds to Bitcoin requires careful technical coordination between blockchains and may affect storage structure. Binance has not disclosed the exact wallets or procedures for the Bitcoin transition.
The move signals growing institutional confidence in Bitcoin’s long-term prospects and could inspire other exchanges to reconsider their reserve structures.
Market and regulatory implications
Traditionally, regulators prefer that user guarantees are held in stable, low-risk assets such as Treasury bonds. Binance’s decision to hold Bitcoin in SAFU marks a shift toward digital gold as a safe-haven reserve.
The $1 billion Bitcoin purchase over 30 days will create an estimated $33 million in daily buying pressure. With average daily trading volumes of $15-20 billion, this influx could significantly support Bitcoin’s price, especially if other institutional players follow Binance’s lead.
Source:: Binance SAFU Plans to Buy $1 Billion worth of Bitcoin in Next 30 Days