Binance set to convert $1 billion stablecoin reserve to Bitcoin to support ecosystem growth

• Binance plans to convert assets in its $1 billion stablecoin reserve, the SAFU Fund, to Bitcoin.
• The exchange said it will restore the fund's value if it falls below $800 million due to price fluctuations.
• The move comes as Binance has faced intense criticism following the October 10 leverage flush.

Crypto exchange Binance announced plans to convert assets in its Secure Asset Fund for Users (SAFU) reserve, consisting mainly of stablecoins, into Bitcoin (BTC) to support ecosystem growth and development.

Binance plans to replace $1 billion stablecoin holdings in SAFU Fund with Bitcoin

Binance is set to adjust the asset structure of its SAFU Fund from stablecoins to Bitcoin, according to a statement on Friday.

The conversion, scheduled to be completed 30 days after the announcement, will fully shift $1 billion in reserves into BTC. "By making this move, we're embracing market cycles and standing shoulder-to-shoulder with the industry, just as we always have," the exchange noted.

Binance stated that it will regularly review the SAFU Fund's asset value and will restore the fund to $1 billion if it falls below $800 million due to Bitcoin's price swings.

The exchange said the move is part of its broader plan to support the crypto ecosystem, highlighting that it considers Bitcoin as the crypto industry's top store of value asset for long-term investment.

"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," the firm added.

Binance established the Secure Asset Fund for Users (SAFU) in 2018 as a protective mechanism designed to safeguard customer assets in the event of unexpected incidents. At inception, the exchange committed a portion of its trading fee revenue to systematically build the fund into a substantial reserve.

As of January 2026, the SAFU wallet holds approximately $1 billion in USDC, according to the Binance website. A share of these assets now serves as regulatory capital reserves in line with Binance's compliance requirements within the Abu Dhabi Global Market (ADGM).

The fund is currently held and administered by Nest Clearing and Custody Limited, a clearing house authorized to provide custody services under the oversight of the ADGM Financial Services Regulatory Authority.

The move comes as the crypto community has expressed displeasure with Binance, urging the exchange to build a Bitcoin reserve using its profits.

Several market participants also recently blamed the exchange for the October 10 leverage flush.

Meanwhile, Bitcoin has been under sustained bearish pressure, trading below $85,000 at the time of publication. Over the past two weeks, the top crypto is down about 12%.