Binance announced on Jan. 29 that it will convert its $1 billion Secure Asset Fund for Users from stablecoins into bitcoin (CRYPTO:BTC) within 30 days as part of a long-term risk management strategy.
The move was detailed in an open letter released by Binance outlining steps to strengthen user protection, transparency, and balance-sheet resilience during periods of market stress.
The SAFU fund, created as an emergency insurance mechanism, currently holds $1 billion in USDC and is designed to protect users during extreme events such as security breaches.
Binance said the decision reflects its view of bitcoin as the core asset of the crypto ecosystem rather than a short-term response to current market conditions.
"Guided by our belief that BTC serves as the core asset in the crypto ecosystem and represents long-term value, Binance will continue to stand alongside our industry through market cycles and uncertainty, continuously investing resources into the crypto ecosystem,”
Binance said.
“Accordingly, Binance will convert the SAFU fund’s $1 billion stablecoin reserves into bitcoin reserves, with plans to complete the conversion within 30 days of this announcement,”