Binance releases proof of reserves, showing 100% backed assets
Cryptocurrency exchange Binance has conducted its twelfth audit of reserves held on the exchange.
Binance has released an audit of its crypto reserves published on Jan. 1, revealing that it controls 597,658.074 Bitcoins (BTC) and 4,265,238.882 Ethereum (ETH). The exchange’s client accounts hold 575,852.891 BTC and 4,002,782.994 ETH. Thus, client funds in Bitcoin and Ethereum are secured by 103.79% and 106.56%, respectively.
Published on Jan. 8, the report also found that users hold almost 32 million BNB. Client assets in USDT stablecoins reached 16.85 billion, 123.20% backed.
Notably, the client balance in BUSD is secured by 167.91%. In November 2023, the asset’s capitalization decreased to $1.89 billion. According to Binance, the exchange will stop supporting BUSD in 2024.
Proof of reserves is information about the storage of client assets on exchanges. Binance founder Changpeng Zhao announced an audit in November 2022. The crypto exchange introduced this concept after the bankruptcy of FTX to demonstrate its readiness to cover any volume of withdrawal requests.
In February 2023, Binance updated the proof of reserves system to make audits more efficient and transparent. The proof of reserves reports are regularly published by OKX, Bitget, and other exchanges.
