Binance Confirms 100% or More Collateralization of User Assets
The cryptocurrency exchange Binance has published the results of its reserve audit, confirming that user funds are 100% collateralized or more.
As of February 1, 2024, Binance held:
- 609,477 BTC, with user deposits of 594,688 BTC (102% coverage).
- 4,353,718 ETH, with user deposits of 4,163,085 ETH (104% coverage).
Stablecoin Collateralization:
- USDT: 120%.
- USDC: 149%.
The minimum coverage ratio (100.01%) was recorded for the CRV token of the decentralized exchange Curve Finance.
“We are demonstrating that we have the funds to cover all user assets 1:1, plus some buffer.”
Binance
Binance uses zk-SNARK technology to verify reserves, ensuring confidentiality.
In November 2022, Binance became the first centralized exchange to launch the Proof-of-Reserves initiative, aimed at increasing transparency.
Similar projects were subsequently implemented by Bitget, OKX, Gate.io, and Huobi.
This move by Binance is a significant step towards restoring trust in cryptocurrency exchanges after the collapse of FTX.