TL;DR
The latest Proof-of-Reserves (PoR) Binance report shows that XRP customer net balances equal over 2.7 billion tokens (over $1.5 billion calculated at current rates). In turn, the exchange’s net balances stand at more than 2.8 billion assets, resulting in a 104.26% ratio.
The proof-of-reserves system aims to provide transparency and build trust within Binance’s user base by showing that the exchange holds enough reserves to cover all clients balances 1:1 (as well as some backups).
In other words, it ensures that customers’ funds are fully backed and that the company operates with financial integrity. The latter is especially important considering the bankruptcies of some leading crypto exchanges, such as FTX, which allegedly mishandled clients’ holdings.
“What this means in actual terms is that Binance holds all user assets 1:1 (as well as some reserves), we have zero debt in our capital structure, and we have made sure that we have an emergency fund (SAFU fund) for extreme cases,” Binance states.
The firm’s Bitcoin and Ethereum net balances also have a positive ratio, standing at 103.79% and 106.56%, respectively.
Other crypto exchanges that have released similar reports in the past several months include Crypto.com, Kraken, OKX, and more.
