Binance has confirmed that its Secure Asset Fund for Users (SAFU) recently purchased 4,225 Bitcoin worth approximately $300 million using stablecoins.
This occurred amid a market dip where Bitcoin was trading around the $68,000–$69,000 range in various reports. This move is part of Binance’s broader plan, announced in late January 2026, to convert roughly $1 billion in SAFU stablecoin reserves into Bitcoin over a 30-day period.
The fund includes a safeguard: if the BTC holdings drop below $800 million in value, Binance will top it up to maintain the $1 billion target. Total SAFU Bitcoin holdings after this purchase: 10,455 BTC. Approximate current value: Around $720–$734 million depending on exact BTC price at reporting time.
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Progress toward $1B goal: Roughly 73% complete based on recent tranches. Binance shared the update directly, including the SAFU BTC wallet address and transaction ID for transparency. The purchase aligns with on-chain data tracked by platforms like Arkham Intelligence and analysts such as Lookonchain.
This isn’t a one-off; Binance has been steadily adding BTC to SAFU in recent weeks prior buys like ~3,600 BTC for ~$233 million earlier in February. It signals strong institutional confidence in Bitcoin as a long-term reserve asset, especially during periods of market fear and volatility—often interpreted as a bullish indicator since it removes supply from circulation and adds sustained demand.
SAFU was originally created in 2018 and boosted after the 2019 hack as an emergency insurance fund to protect user assets in case of breaches or failures. Shifting it heavily into BTC represents a treasury strategy pivot toward “hard assets” over stablecoins.
Similar large buys from entities like MicroStrategy adding BTC around the same time contribute to narratives of “smart money” accumulating during dips. This reinforces Bitcoin’s role in major exchange risk management and could support price stability or recovery in volatile conditions.
The Secure Asset Fund for Users (SAFU) is Binance’s dedicated emergency reserve fund designed to protect user assets in the event of extreme circumstances, such as major security breaches, hacks, platform failures, or other catastrophic events that could lead to user losses.
SAFU acts as an insurance-like mechanism to fully compensate affected users if Binance experiences a security incident or similar issue that results in loss of funds under its responsibility. It provides an extra layer of protection beyond standard security measures like cold storage, multi-factor authentication, and insurance partnerships, ensuring users’ funds remain safe even in worst-case scenarios.
It demonstrates Binance’s commitment to user safety, risk management, and building trust in the volatile crypto industry. The fund is held in secure, verifiable cold wallets (offline storage), with transparency through on-chain addresses and periodic updates.
In addition to its primary emergency role, portions of SAFU have been used for regulatory compliance. Binance officially launched SAFU around July 2018 in various reports. This came amid a wave of high-profile exchange hacks in the crypto space during 2017–2018, highlighting the need for stronger user protections.
Binance committed to allocating 10% of all trading fees collected on the platform to continuously build and grow the fund. This ongoing contribution helped it accumulate value over time without relying on external insurance or user fees.
In May 2019, Binance suffered a significant security breach where hackers stole approximately 7,000 BTC worth tens of millions at the time. Binance used the SAFU fund to fully reimburse all affected users, restoring their balances without any direct impact on unaffected accounts.
This real-world use case proved the fund’s effectiveness and reinforced its credibility. By November 2022, Binance topped up SAFU to reach a $1 billion valuation during a broader crypto market downturn (crypto winter), signaling strong commitment amid industry uncertainty.
The fund has historically held a mix of assets, including BNB, BTC, and stablecoins e.g., BUSD or USDC equivalents, all in separate cold wallets for security. As of early 2026, SAFU maintains a target value around $1 billion, with recent strategic shifts to enhance long-term resilience and align with “hard asset” treasury strategies.
The term “SAFU” originated from a viral 2018 YouTube meme video by creator Bizonacci titled “Funds Are Safu.” It quickly became a community slogan, with Binance adopting “Funds are SAFU” in announcements to reassure users during high-load periods, incidents, or market volatility. Today, it’s a widely recognized phrase in crypto culture symbolizing security and reliability.
SAFU started as a proactive response to industry risks in 2018, evolved into a proven safety net (most notably in 2019), and continues to grow as a cornerstone of Binance’s user protection strategy—now backed by roughly $1 billion in assets and transparent on-chain management.