Binance Maintains Bitcoin Reserve Continuously Above 100% for Thirty Successive Months
Crypto Giant, Binance Maintains a 102% Reserve Ratio for 30 Months
In an impressive show of transparency and commitment, Binance, the world's leading crypto exchange by trading volume, has managed to maintain a reserve ratio of over 100% for a staggering 30 consecutive months. This impressive streak was confirmed in the latest snapshot at Bitcoin block height 894,668, with the company holding 616,886 BTC, more than enough to back customer net balances of 604,410 BTC.
A New Transparency Standard
Following the tumultuous year of 2022 that was marked by the collapse of FTX, exposing mismanagement of user funds, Binance took a decisive step to show that transparency and accountability are top priorities. The exchange's proof-of-reserve (PoR) initiative was born in response to the FTX collapse, and since then, Binance has published monthly attestations, verified by on-chain experts and third-party auditors such as Mazars.
CryptoQuant analyst Maartun, who scrutinized the exchange's latest snapshot, emphasized the significance of its impressive track record:
"Ever since publishing their first Proof-of-Reserve report, Binance has consistently maintained a reserve ratio above 100%," he wrote. "This steadfast commitment towards transparency showcases a solid asset backing, assuring customers that their funds are secure and accounted for."
Of the 616,886 BTC, Maarten revealed that 603,374 are held on-chain, while another 13,512 reside in third-party custody on the BNB Smart Chain as BTCB.
Proving Credibility Amidst Skepticism
In March, our website highlighted that Binance's reserve ratio had been on a remarkable 29-month run above 100%, dispelling rumors that the company was selling its BTC for USDC. CryptoQuant's analysis helped quell these speculations, with the firm stating that all figures presented by Binance aligned with on-chain data.
Past independent audits have further validated the exchange's transparency claims. In July last year, Mazars confirmed that Binance held 101% of customers' BTC deposits, underscoring the integrity of its Merkle tree-based PoR system.
Market Consequences
While some industry voices, such as Kraken CEO Jesse Powell, have criticized proof-of-reserve reports for not accounting for liabilities, Binance's unwavering reserve record has helped the exchange maintain market credibility.
This resilience is also reflected in Binance's stablecoin reserves, which, as of the beginning of the year, stood at over $31 billion, nearly a fivefold increase from mid-2023. Meanwhile, its native BNB token has continued its steady ascent, trading at just under $658 per CoinGecko data as of this writing.
Over the past week, BNB gained 8.5%, slightly underperforming the broader crypto market, which jumped 12.4% in the same period. Despite the lag, the previous 30 days saw BNB register an 11.4% uptick, with its current price only being 16.5% shy of its all-time high.
- Binance's proof-of-reserve (PoR) initiative, launched in response to the FTX collapse, has seen the exchange maintain a reserve ratio above 100% for over 30 consecutive months, as confirmed in the latest snapshot at Bitcoin block height 894,668.
- CryptoQuant analyst Maartun highlighted Binance's impressive track record, stating, "Ever since publishing their first Proof-of-Reserve report, Binance has consistently maintained a reserve ratio above 100%," showcasing the exchange's commitment to transparency and assuring customers that their funds are secure.
- The stability and credibility of Binance have been demonstrated by its reserve record, as well as its growing stablecoin reserves of over $31 billion and the steady ascent of its native BNB token, currently trading at just under $658.
