Leading cryptocurrency exchange Binance released its 22nd Proof of Reserves (PoR) report to promote transparency and maintain integrity. This report typically shows the exchange’s user assets. Binance states that it holds all user assets at a 1:1 ratio and has additional reserves. It also claims to have zero debt in its capital structure and a security fund (SAFU fund) for emergencies.
Binance’s Asset Reserve Ratio is High
The 22nd PoR report shows that users’ Bitcoin 
$91,155 assets are around 605,000 BTC, a 1.27% decrease from the previous report. Users’ Ethereum 
$3,110 assets are 4.486 million ETH, a 4.58% decrease, reducing by 225,000 ETH. On the other hand, users’ Tether (USDT) assets increased by 4.34%, reaching 22.11 billion units.
Binance’s Solana (SOL) reserve is 32 million SOL, while the Dogecoin (DOGE) customer net balance is recorded at 13.12 billion DOGE. The snapshot was taken on September 1, 2024. Binance has a reserve ratio of 106.84% for BTC assets, 103.68% for ETH assets, 100.09% for DOGE, 112.82% for USDT, and 102.67% for SOL assets.
FTX’s Collapse Made PoR Reports Mandatory
FTX experienced a major liquidity crisis and halted withdrawal operations, unable to meet user demands. After the company’s collapse, approximately 1 million creditors suffered billions of dollars in losses. Users on other crypto platforms also experienced a loss of confidence.
Binance CEO Changpeng Zhao said, “The introduction of the PoR system is an important step to regain users’ trust.”
The PoR system has helped these crypto firms regain users’ trust. Binance has been continuously updating its platform for two years to ensure a seamless experience for users. It also provides all the necessary information for users to invest effectively in crypto. Other exchanges are following Binance’s lead.
In the first quarter of 2024, OKX published its 17th PoR report, showing a BTC reserve ratio of 102%, ETH 104%, USDT 106%, and USD 110%. The report also reveals that the exchange is over-collateralized and supports user assets at a 1:1 ratio.
In May, leading crypto exchange and Web3 innovator Gate.io published a PoR report showing a reserve-deposit ratio of 115.34% and a total reserve value of $6.49 billion. This report covers approximately 209 digital assets, 20 more than the previous report. Binance also periodically increases its asset size, reinforcing its position as the top exchange in the market.
Binance’s continuous increase in reserves aims to ensure user confidence and enhance transparency in the crypto market. Other exchanges taking similar steps could increase the overall reliability of the crypto market.
