Binance is making a bold move by converting its entire $100 million SAFU emergency fund from stablecoins to Bitcoin within the next 30 days. This significant shift aims to enhance the protection of user assets and reflects the exchange”s confidence in the leading cryptocurrency. The decision coincides with technical amendments to its recently introduced TradFi perpetual contracts, along with a year-end report highlighting the exchange”s efforts in combating scams, which amounted to $6.69 billion in prevented losses for 2025.
The conversion of the SAFU fund incorporates a rebalancing mechanism designed to maintain the fund”s value above $80 million, regardless of fluctuations in Bitcoin”s price. This strategy indicates a calculated risk tolerance, allowing for a potential 20% drawdown in BTC before any rebalancing occurs.
In an open letter to the cryptocurrency community, Binance disclosed impressive figures from the previous year. Notably, the exchange recovered $48 million in incorrect deposits for 38,648 users, pushing its total recovery efforts past $1.09 billion. Additionally, Binance identified potential risks for 5.4 million users and collaborated with global law enforcement to seize $131 million in illicit funds. On the asset side, Binance”s proof-of-reserves demonstrated a full backing of approximately $162.8 billion across 45 cryptocurrencies by the end of the year.
Updates on TradFi Perpetual Contracts
Alongside the SAFU fund conversion, Binance has introduced amendments to its TradFi perpetual contracts, set to take effect on February 11, 2026. These USDT-settled perpetuals, which debuted in early January with offerings in gold (XAUUSDT) and silver (XAGUSDT), allow traders to access traditional market exposure around the clock without needing to hold the underlying assets. The contracts are managed via Nest Exchange Limited under the regulatory framework of Abu Dhabi”s FSRA.
To mitigate potential market manipulation during off-hours, Binance employs an Exponentially Weighted Moving Average for mark price calculations when traditional markets close. This approach ensures fair pricing and order execution.
What Traders Should Anticipate
The timeline for the Bitcoin conversion is critical. With a 30-day window to finalize the transition, any significant price movements in Bitcoin could influence the ultimate allocation of the SAFU fund. The established $80 million floor indicates Binance”s readiness to manage moderate volatility, while clearly defining its limits for downside protection.
For those engaged in TradFi perpetual trading, the changes in price precision may impact order placement and execution strategies on the affected contracts. Binance has also hinted at plans to broaden the scope of its TradFi perpetual offerings beyond precious metals, although specific assets and timelines remain undisclosed.
