Binance has announced that it will transition approximately $1 billion held in stablecoins within its Secure Asset Fund for Users (SAFU) back into Bitcoin (BTC), with the conversion expected to complete in 30 days.

This change aims to restore the exchange’s emergency insurance reserve into BTC as it faces increasing scrutiny regarding its market practices and ties to its previous CEO, Changpeng “CZ” Zhao.

Binance’s SAFU Transition as a Step Towards Transparency

In an open letter posted on X, Binance stated that the SAFU fund will be fully rebalanced into Bitcoin. If its value dips below $800 million, Binance will enhance the fund back up to $1 billion. Continuous rebalancing based on market valuation will also be implemented.

Launched in 2018, SAFU serves as an insurance pool to address user losses during extreme incidents such as hacks. In April 2024, Binance shifted the fund entirely into USDC, citing stability as the reason. This recent reversal underlines the belief that Bitcoin remains the premier long-term asset in the crypto landscape.

“We believe Bitcoin is the foundational asset of this ecosystem and the premier long-term store of value,” the announcement emphasized.

The company’s metrics from 2025 reflect that they recovered $48 million from mistaken deposits and prevented $6.69 billion in scam-related losses through stringent risk controls.

Community reactions were immediate, with commentator Garrett Bullish labeling the conversion as “a direct capital injection into the market” and a commendable action by responsible builders.

Binance’s Market Influence and Recent Developments

This announcement coincided with new reports indicating that Binance contributed to 41% of spot trading volume among the top ten exchanges in 2025, with equally significant involvement in Bitcoin perpetual futures and stablecoin reserves.

The discussions also involved Changpeng Zhao, who defended his investment approach after backlash on social media, clarifying that the strategy does not suit all cryptocurrency assets. Others, like The White Whale, expressed dissatisfaction with the Binance leadership during a bear market.

Changpeng Zhao remarked, “FUD doesn’t hurt the target… FUD hurts the market (i.e., everyone).” He further claimed that Binance remains a net hoarder of assets and only converts part of its revenue for operational costs, emphasizing regulatory oversight of the exchange’s activities.