Binance to Convert $1B SAFU into Bitcoin Reserves

Published: 2026-01-30 05:53:56 |

Binance will convert its $1 billion Secure Asset Fund for Users (SAFU) from stablecoin holdings into Bitcoin (BTC) within 30 days, describing BTC as the crypto ecosystem’s core asset and a long-term store of value. The exchange says the move is a strategic, long-term investment rather than a short-term trade and pledges ongoing transparency and updates. Binance will monitor the SAFU value and rebalance back to $1 billion if BTC’s market value falls below $800 million. SAFU, established in July 2018 and funded by spot trading fees, serves as a user-protection reserve. Alongside the conversion announcement, Binance published 2025 operational metrics: $48 million recovered across 38,648 incorrect-deposit cases (pushing cumulative recoveries above $1.09 billion); risk alerts to 5.4 million users that prevented roughly $6.69 billion in scam losses; cooperation with law enforcement resulting in about $131 million seized or disrupted tied to illicit activity; and proof-of-reserves covering approximately $162.8 billion in user assets across 45 assets. Key keywords: Binance, SAFU, Bitcoin, BTC, stablecoins, proof-of-reserves, user protection.

Bullish

Converting a $1B user-protection reserve from stablecoins into Bitcoin increases direct buy-side demand for BTC and signals confidence from a major exchange. The commitment to rebalance if the fund falls below $800M caps downside exposure but still leaves a sizable BTC allocation on exchanges. Short-term impact: probable positive price pressure as Binance executes purchases over 30 days; volatility risk exists while large accumulation occurs. Medium-to-long term: the move signals institutional-level conviction in BTC as a reserve asset, which can be sentimentally bullish and may support higher price floors. Offsetting factors include market absorption capacity, execution strategy (block buys vs. OTC), and broader macro/headline risks. Overall, net effect on BTC price is likely bullish given the scale and credibility of Binance’s pledge.