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Binance’s Proof of Reserves Confirms Full Backing of Assets

The renowned cryptocurrency exchange Binance has conducted its twelfth audit to verify the reserves held on the platform.

On January 1st, Binance unveiled its latest audit, confirming control over 597,658.074 Bitcoins (BTC) and 4,265,238.882 Ethereum (ETH). Interestingly, client accounts on the exchange hold 575,852.891 BTC and 4,002,782.994 ETH, ensuring client funds are backed by 103.79% for Bitcoin and 106.56% for Ethereum.

The report, released on January 8th, highlighted that users hold nearly 32 million BNB, while client assets in USDT stablecoins amount to 16.85 billion, securing them at 123.20%.

A noteworthy finding was the 167.91% backing for the client balance in BUSD, even though the asset’s capitalization dwindled to $1.89 billion in November 2023. Binance has announced plans to discontinue support for BUSD in 2024.

Proof of Reserves stands as a critical assurance of client asset storage on exchanges. Binance’s founder, Changpeng Zhao, initiated an audit in November 2022, introducing this concept post the FTX bankruptcy to showcase preparedness in fulfilling withdrawal requests.

In February 2023, Binance upgraded the Proof of Reserves system, enhancing audit efficiency and transparency. This practice of publishing Proof of Reserves reports is commonplace among exchanges like OKX, Bitget, and others.

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