The post Binance Shifts $1B SAFU Fund from Stablecoins into Bitcoin appeared on BitcoinEthereumNews.com.

Binance is shifting its flagship user protection vehicle, the Secure Asset Fund for Users (SAFU), from stablecoin holdings into Bitcoin over the next 30 days, re‑denominating the fund’s reserves into BTC. In an open letter to the crypto community, the exchange framed the move as an expression of its conviction that Bitcoin (BTC) is the core long‑term asset of the crypto ecosystem rather than just another trading product, and said it will rebalance the fund back up to $1 billion if market volatility drives its value below $800 million.  That decision effectively makes the fund more exposed to Bitcoin price swings, raising questions about whether a sharp BTC drawdown could weaken the buffer precisely when a major security or insolvency event might require rapid payouts. A spokesperson from Binance told Cointelegraph that the exchange would stand by the industry “through market cycles and uncertainty,” continue investing resources in the broader ecosystem and would consider allocations of “core assets,” such as BNB, in its next review.  The spokesperson added that Binance would “use our treasury reserves” to top up the SAFU fund if it dipped below $800 million. Protecting users in “extreme” cases SAFU, launched in 2018, is funded by a slice of Binance trading fees and is designed as an emergency pot to reimburse users in “extreme” cases such as hacks or critical platform failures.  The spokesperson said that the types of losses covered by SAFU “may include losses sustained by users in the rare event of a platform security or other incident.” Open letter to the crypto community. Source: Binance Related: Turns out, it’s pretty difficult to insure crypto users and platforms In May 2019, for example, when hackers stole around 7,000 BTC (about $40 million at the time), exploited customers were made whole through SAFU, with Binance saying…

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Filed under: News - @ January 31, 2026 2:21 am