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Binance to shift $1 billion user protection fund into bitcoin amid market rout

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Binance to shift $1 billion user protection fund into bitcoin amid market rout

Binance will convert the stablecoin holdings in its $1 billion Secure Asset Fund for Users to bitcoin over the next 30 days, with plans for regular audits.

By Omkar Godbole, AI Boost|Edited by Shaurya Malwa
Jan 30, 2026, 6:30 a.m.
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Binance to swap stablecoins held in user security fund with bitcoin

What to know:

  • Binance will convert the stablecoin holdings in its $1 billion Secure Asset Fund for Users to bitcoin over the next 30 days, with plans for regular audits.
  • The exchange has pledged to replenish the fund to $1 billion if bitcoin price swings cause its value to fall below $800 million.
  • Binance framed the change as part of its long-term industry-building efforts.

Top cryptocurrency exchange Binance announced said Friday that it shall switch the stablecoin in its $1 billion emergency user protection fund to bitcoin over the next 30 days.

The move targets the Secure asset Fund for Users (SAFU), which is a security fund created to protect users from losses due to unforeseen events such as hacks. The exchange plans to gradually convert the stablecoin holdings within 30 days, committing to regular audits.

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It added that if bitcoin's price swings drop the fund's value below $800 million, the exchange will top it back up to $1 billion.

"This initiative is part of Binance's long-term industry-building efforts, and we will continue to advance related work, gradually sharing more progress with the community," the translated version of the exchange's post on X, said.

As of 2025, the exchange's proof-of-reserves report showed users holding roughly $163 billion in crypto tokens on the platform.

Stablecoins are digital tokens with values pegged to an external reference such as the U.S. dollar. Bitcoin is the world's leading cryptocurrency with a market value of over $1.6 trillion.

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