Binance Unveils Evidence of Reserves, Demonstrating Full Asset Backing

Binance, the popular cryptocurrency exchange, has recently completed its twelfth audit of the reserves it holds. The audit, which was released on January 1, reveals that Binance currently controls 597,658.074 Bitcoins (BTC) and 4,265,238.882 Ethereum (ETH). Furthermore, client accounts on the exchange hold 575,852.891 BTC and 4,002,782.994 ETH. This means that client funds in Bitcoin and Ethereum are secured at rates of 103.79% and 106.56% respectively.

The report, published on January 8, also highlights that users on the platform hold almost 32 million BNB tokens. Additionally, client assets in USDT stablecoins have reached a value of 16.85 billion, with a backing rate of 123.20%. It is worth noting that the client balance in BUSD is secured at a rate of 167.91%. However, the asset’s capitalization decreased to $1.89 billion in November 2023. As a result, Binance has announced that it will cease to support BUSD in 2024.

Proof of reserves is a concept that provides information about the storage of client assets on exchanges. Binance’s founder, Changpeng Zhao, announced the introduction of audits in November 2022, following the bankruptcy of FTX. This move was made to demonstrate the exchange’s preparedness to cover any volume of withdrawal requests.

In February 2023, Binance took steps to enhance the efficiency and transparency of its proof of reserves system. As a result, the exchange now regularly publishes proof of reserves reports, joining the ranks of other exchanges such as OKX and Bitget.

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