Binance plans to transform about $1B in its SAFU insurance coverage fund from stablecoins again into Bitcoin inside 30 days.
Binance has mentioned that it’ll convert roughly $1 billion held in stablecoins inside its Safe Asset Fund for Customers (SAFU) into Bitcoin (BTC), with the method set to complete inside 30 days.
The transfer shifts the alternate’s emergency insurance coverage reserve again into BTC and comes as Binance faces renewed scrutiny over market affect, stability sheet practices, and management ties to former CEO Changpeng “CZ” Zhao.
Binance Outlines SAFU Shift as A part of Broader Transparency Push
In an open letter posted on X on January 30, Binance said the SAFU fund will likely be absolutely rebalanced into Bitcoin and topped again as much as $1 billion if its worth falls beneath $800 million as a consequence of value declines. The alternate added that the fund will endure common rebalancing based mostly on market worth.
SAFU was launched in 2018 as an insurance coverage pool to cowl person losses throughout excessive occasions similar to hacks. In April 2024, Binance converted the fund completely into USDC, a transfer it framed on the time as a stability measure. That conversion made SAFU equal to about 3% of USDC’s circulating provide, in response to Binance disclosures revealed on the time.
The most recent change reverses that method. Binance mentioned it views BTC because the long-term retailer of worth for the crypto ecosystem and framed the choice as aligning SAFU with that perception.
“We imagine Bitcoin is the foundational asset of this ecosystem and the premier long-term retailer of worth,” the announcement learn.
It additionally highlighted inside metrics from 2025, together with $48 million recovered from incorrect deposits and $6.69 billion in scam-related losses prevented by way of danger controls.
Response from the group was swift. Commentator Garrett called the transfer “a direct capital injection into the market” and “what accountable builders do.”
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Binance’s Place and Prevailing Sentiment
The announcement landed as new knowledge from CryptoQuant showed that Binance accounted for about 41% of spot buying and selling quantity among the many prime 10 exchanges in 2025, with equally excessive shares in Bitcoin perpetual futures and stablecoin reserves.
It additionally follows current public debates involving former CEO Changpeng Zhao. On January 28, he defended his private buy-and-hold funding philosophy after social media criticism, clarifying that the technique “clearly doesn’t apply to each coin.”
Some group members, like The White Whale, expressed broader frustration, noting timelines have been “stuffed with individuals fed up with CZ and the Binance cartel,” linking the sentiment to the onset of a bear market.
The Binance co-founder, who stepped down as CEO in 2023, weighed in, stating,
“FUD doesn’t damage the goal… FUD hurts the market (i.e. everybody).”
He added that, based mostly on his data, Binance is “a big internet hoarder” of property, and pushed again in opposition to claims that the alternate or its management promote closely throughout downturns.
In a publish on X, he defined that the agency converts solely a part of its income to cowl bills and stays a internet holder of crypto. He additionally pointed to the presence of a world regulator with oversight over alternate exercise.
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