User assets on Binance exceed $100 billion

Managed by Binance crypto exchange located more than $100 billion of client funds. A message about this was published on the company's official blog.

According to the statement, all user funds are backed by platform assets in a 1:1 ratio. In addition, Binance has additional reserves that can be verified through the regular Proof-of-Reserves (PoR) report.

“By supporting 31 digital assets and leveraging innovative solutions based on zero-knowledge cryptography, our POR demonstrates Binance’s commitment to user fund transparency,” it said.

The statement said that since the publication of the first proof of reserves in November 2022, Binance's PoR system has been significantly improved. It now supports more than 30 virtual assets and the zk-SNARK solution for increased security and privacy.

According to the crypto exchange, the proof-of-reserve system sets a new standard for transparency through a combination of Merkle tree and zero-knowledge evidence.

This approach allows users' overall net asset balances to be verified without compromising personal privacy, an important step in ensuring trust and security in the ecosystem, Binance said.

“Open sourcing POR and active engagement with the community and security experts have been instrumental in improving the system. Feedback and external audits have led to continuous improvements, highlighting Binance’s commitment to not just maintaining, but elevating industry standards,” the exchange said.

According to the latest iteration of PoR, user funds in Bitcoin and Ethereum are backed by 103.1% and 103.4%, respectively.

It should be noted that client assets in stablecoins are backed by more than 110%. In particular, for Tether (USDT) this figure is 110.66%, for FDUSD – 112.44%, and for USDC – more than 131%.

Binance implemented a reporting system following the bankruptcy of crypto exchange FTX to demonstrate its commitment to covering customer withdrawal requests.

According to the blog post, the company's commitment to its proof-of-reserve system is to ensure the safety and sound management of user funds, as well as transparency guarantees that benefit the entire ecosystem.

Source: Cryptocurrency

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