MEXC will boost its user-protection fund to $500 million and add 1,000 bitcoin to its reserves over the next two years. The exchange announced the plan this week, saying it aims to reinforce confidence among traders as the crypto market continues to expand.
Strengthening the safety net
The Guardian Fund is MEXC’s dedicated pool for covering losses in extreme events — hacks, system failures, or insolvency scenarios. By targeting $500 million and a separate 1,000 BTC stash, the exchange is signaling it wants its safety net to grow in step with its user base. The fund currently exists, but the new commitments roughly double its stated ambition.
A dual-reserve system
MEXC will hold the Guardian Fund in both bitcoin and USDT, a structure it calls a dual-reserve system. The idea is that a mix of a volatile asset like BTC and a stablecoin gives the fund flexibility. If bitcoin’s price drops sharply, the USDT portion maintains a stable floor. If BTC rallies, the fund’s value swells. The exchange says this approach is meant to provide market stability even during stress.
Two-year timeline
The $500 million and 1,000 BTC targets won’t be hit overnight. MEXC laid out a two-year horizon, meaning incremental additions each quarter. That gives the exchange room to accumulate reserves without distorting its own balance sheet — or the market. It also means users will see regular updates on how much has been added.
What users should watch for
MEXC hasn’t said how often it will publish proof-of-reserves data, but the Guardian Fund expansion implies more frequent audits or snapshots. The exchange already runs a proof-of-reserves page; the new plan likely means that page will get updated with clearer milestones. For now, the clock starts on a two-year build that, if executed, would put MEXC among the better-capitalized exchanges by reserve ratio.
