"Binance said Friday it will convert the stablecoin holdings in its $1 billion Secure Asset Fund for Users (SAFU) entirely into bitcoin over the next 30 days. The exchange said the transition will be carried out gradually and accompanied by regular audits. Binance also pledged to replenish the fund if bitcoin price volatility causes its value to fall below $800 million, using treasury reserves to restore it to $1 billion. Binance launched its SAFU back in 2018 to protect users against losses from extreme events such as hacks or major system failures. The fund is financed through a portion of Binance's trading fees and is held separately from user assets in cold wallets."
"Binance has repeatedly cited SAFU as a cornerstone of its risk-management and trust framework. "This initiative is part of Binance's long-term industry-building efforts," the exchange said in its translated statement posted to X. "We will continue advancing related work and gradually share progress with the community." Binance's decision comes as bitcoin slumps The move comes during a period of heightened market stress. Bitcoin has declined significantly from recent highs, while liquidity dislocations during extreme price moves have revived debate over exchange infrastructure and transparency."
Binance will convert the stablecoin holdings in its $1 billion Secure Asset Fund for Users (SAFU) entirely into bitcoin over the next 30 days, executing the transition gradually with regular audits. The exchange pledged to top up the fund from treasury reserves if bitcoin volatility pushes value below $800 million, restoring it to $1 billion. SAFU, funded by a portion of trading fees and stored in cold wallets since 2018, was created to protect users from extreme events and has been deployed to cover a 2019 hack. Binance framed the move as a conviction in bitcoin as a reserve asset.
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