Binance, the world’s largest cryptocurrency exchange, has announced major changes to its Secure Asset Fund for Users (SAFU). The company will convert stablecoin holdings in the $1 billion emergency reserve into bitcoin (BTC) within the next 30 days.
SAFU is a security reserve designed to protect Binance users from losses due to unforeseen events such as hacks. The development comes during a tense period for the exchange, as criticism has intensified across social media over its token listing practices, particularly through the Binance Alpha program.
Binance Makes Bitcoin The Sole Backing For $1B SAFU Fund
Binance stated in an open letter that the move reflects its belief that bitcoin serves as the “foundational asset” of the crypto ecosystem and the “premier long-term store of value.” The company will swap the full $1 billion in stablecoin held under SAFU into BTC, and track the alpha crypto asset’s market value on an ongoing basis.
The exchange added that if bitcoin price swings push the fund’s value below the $800 million threshold, then it will add more BTC to top it back up to $1 billion, and conduct regular audits. SAFU is part of Binance’s “long-term industry-building” efforts, and it will continue to expand “related work” and gradually share progress with the crypto community.
Binance first established SAFU in 2018 as a financial safety net to protect users from potential vulnerabilities. It is funded by allocating 10% of the exchange’s spot trading fees.
Last year, the company reported recovering $48 million across 38,648 cases of incorrect deposits, bringing the cumulative recovery amount to over a billion U.S. dollars. The exchange claimed to have helped 5.4 million users identify potential risks, preventing approximately $6.7 billion in scam-related losses. It also worked with global law enforcement agencies, leading to the confiscation of $131 million in illicit funds.
Binance Last Tapped SAFU to Reimburse Users Affected by $7 Million Trust Wallet Hack
The last time Binance tapped SAFU was in December 2025, when it released $7 million in payout to users affected by a vulnerability in Trust Wallet’s Chrome browser extension. That vulnerability involved a malicious code embedded in the extension’s JavaScript files disguised as routine analytics functionality. When users imported their seed phrases into the compromised version, the code silently transmitted sensitive wallet data to a server controlled by the attack, resulting in immediate fund drain.
At the time, Binance founder and former CEO Chanpeng ‘CZ’ Zhao confirmed that the affected users would be fully reimbursed via SAFU, while emphasizing that the breach was limited to the browser extension, with the mobile app marked safe. Trust Wallet released a patched version to stop further losses, and users were advised to disable the compromised version and upgrade immediately.
SAFU holdings initially comprised BTC, Binance Coin (BNB), USDT, True USD (TUSD), and Binance USD (BUSD), before the entire fund was converted into USDC in April 2024 to reduce volatility and preserve predictable coverage. Moving the fund into bitcoin marks a clear shift towards a more crypto-native reserve strategy by the company.
Is BTC-Backed SAFU a Double-Edged Sword?
However, a BTC-backed reserve fund also comes with its own set of trade-offs. Bitcoin’s price can swing sharply, reducing SAFU’s total value. Concentrating the fund in BTC increases reliance on a single asset instead of a more diversified portfolio mix. With Binance facing backlash over token listing-related losses, critics may view the move as a headline-grabbing pivot rather than a solution to critical issues.
Binance has pledged to reimburse the fund if its value drops below $800 million, which may help address some of those concerns. Nevertheless, SAFU’s conversion can be read as both a statement of confidence in bitcoin and a calculated risk – one that will be closely watched as scrutiny around the exchange continues.
At the time of writing, Bitcoin (BTC) is trading at $82,922 – down 5.23% in 24 hours.
