Binance, the world’s largest digital asset exchange, has announced a major change to its user protection system. The company said it will move its $1 billion emergency fund into bitcoin. This change will happen over the next 30 days.

The fund is called the Secure Asset Fund for Users, or SAFU. It exists to protect users if something goes wrong, such as a hack or a serious system failure. Until now, the fund was mostly held in stablecoins linked to the U.S. dollar.

After the change, SAFU will be held entirely in bitcoin. This decision shows Binance’s long-term belief in bitcoin. However, some people in the digital asset industry are worried about the risks.

SAFU was created in 2018 and is funded using a portion of Binance’s trading fees. The fund is kept separate from the exchange’s daily business funds. It acts like an insurance reserve for users in extreme situations.

The fund has been used before. In 2019, hackers stole about 7,000 BTC from Binance. At the time, that was worth around $40 million. Binance used SAFU to repay all affected users and said no one lost money.

In a public letter shared on X, Binance explained why it is making the change. The company said, “This initiative is part of Binance’s long-term industry-building efforts,” highlighting that the move is part of its long-term plan, not a short-term reaction.

Binance believes holding SAFU in bitcoin better matches its vision for the future of digital assets. The company says bitcoin is more than a trading tool and should be treated as a long-term store of value.

Still, bitcoin prices can rise and fall quickly. Because of this, some experts worry that the fund could lose value at the worst possible time, such as during a major hack or market crash.

Binance says it has a plan to deal with this risk. If bitcoin price drops cause SAFU’s value to fall below $800 million, the company will add more money. Binance promised to refill the fund back to $1 billion using its own treasury.

Binance said the company will “use our treasury reserves” to support the industry “through market cycles and uncertainty.” The exchange also said it will regularly monitor and audit the fund.

The bitcoin in SAFU will be stored in cold wallets and kept separate from Binance’s operating funds. The assets will be held through a licensed clearing house regulated in Abu Dhabi. Users can also track the SAFU wallet on the blockchain.

The announcement comes at a time when Binance is under increased scrutiny. The October 10 flash crash that caused cascading liquidations has led to criticism from traders and industry figures. Some users said Binance did not explain past incidents clearly enough. There has also been broader debate about token listings, platform transparency, and risk management.

Binance is already one of the largest holders of bitcoin in the world. The exchange holds around 632,000 BTC according to Arkham Intelligence. After the change, SAFU alone will hold about 12,000 BTC.

Binance reports that it holds more than $162 billion in user assets across about 45 digital assets. The company says all user funds are backed 1:1 and verified through its proof-of-reserves system.

The exchange also highlighted its security efforts. In 2025, Binance said it helped users avoid billions of dollars in scam losses and recovered millions in misplaced funds. It also worked with law enforcement on criminal investigations.