Binance Reports $16 Billion in Bitcoin Reserves

Binance Exchange
Binance Exchange

Cryptocurrency exchange Binance has released a monthly Proof-of-Reserves (PoR) report — it holds 618,126 BTC (~$15.9 billion) on its balance to secure 588,171 BTC (~$15.1 billion) of customer deposits.

105.09
Data: Binance.

Stocks Ethereum also has 5% excess reserves. The most oversecured assets were MATIC (119%), USDT (118%), FDUSD (116%), BNB (114%) and CHZ (108%).

The BUSD stablecoin, which will be deprecated by 2024, has a 7% oversupply.

Notably, only 31 of the 350 tokens listed on the platform are listed on Binance.

“When a user deposits one bitcoin, Binance’s reserves are increased by at least one bitcoin to ensure that the client’s funds are fully secured. It is important to note that this does not include corporate assets, which are held in a completely separate ledger,” the exchange said in a statement.

According to the company, the report summarizes all user balances from the Merkle Root hash, which combines account data from the Merkle tree into a single table for auditors.

To conduct PoR, the exchange uses a special type of zero-knowledge proof – zk-SNARK. This method prevents the leakage of personal data of customers.

In November 2022, Binance was the first centralized exchange to launch Proof-of-Reserves. The reason was the loss of confidence in the platform after the collapse of FTX. Subsequently, similar initiatives were implemented by Bitget, OKX, Gate.io And Huobi.

A number of experts questioned the effectiveness of such checks, noting that the indicators do not indicate the safety of users’ assets.

Recall that in April 2023, the OKX crypto exchange updated the reserve confirmation procedure by adding support for the zk-STARKs mechanism.

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