User assets held by Binance exceed 100 billion USD

Main contents

• The heavy influx of capital into Binance and rising digital asset prices resulted in an important milestone: the value of the funds Binance holds on behalf of its users exceeded $100 billion.
• Binance holds all user funds at a 1:1 ratio, plus additional reserves that anyone can verify through a proof of reserve (POR) system. Binance’s POR supports 31 digital assets and uses advanced solutions based on zero-knowledge encryption . This is a testament to Binance’s commitment to transparency regarding user funds.
• As more money flows into the cryptocurrency ecosystem in the current market cycle, the transparency and reliability of centralized platforms that hold users’ assets has become ever more important. time is over. With its proof of reserve system, Binance has set an industry standard in this regard.

Over the past few weeks, the crypto industry has had no shortage of records, highest milestones, and firsts. Recently, Binance added another special record to this collection, contributing testament to the healthy functioning of the crypto market and the increasing level of transparency regarding user funds in the space. This. In the first week of March, the total value of user assets stored on Binance surpassed 100 billion USD for the first time since we started publishing user assets through the system. proof of reserve (POR) system in November 2022.

The 16th POR snapshot – taken on the first of March – shows reserves very close to this landmark figure. As capital flowed into the exchange and digital asset prices continued to rise in March, assets on Binance surpassed the $100 billion mark shortly thereafter. With this important milestone, we need to understand the factors that contributed to this success and reaffirm the importance of transparency and trust in the digital assets sector.

Milestone of 100 billion USD: Further analysis

The journey past the $100 billion mark is not just a random number – it is a testament to users’ continued trust in Binance and the strong performance of the crypto market. Digital asset prices have seen a sustained and significant increase in recent weeks, a trend that has undoubtedly played a significant role in enhancing the value of Binance’s user assets.

 Total USD value of digital assets held by Binance, from November 2022 to March 2024. Source: DefiLlama.

This period of positive market momentum combined with growing capital inflows into the platform has demonstrated growing excitement for cryptocurrencies as well as the trust users place in Binance as a Trusted exchanges and custody platforms to deposit funds into. Our transparent money management process and commitment to protecting user assets are key pillars that maintain this trust. The key element in this formula is Binance’s POR system. This system allows anyone to verify the total user assets we hold as well as allowing individual users to check whether their funds are being held securely.

Foundation of faith

Since its launch with support for several major tokens, Binance’s POR system has grown significantly . Currently, the system supports 31 types of digital assets and uses advanced solutions such as zk-SNARK to enhance security and efficiency. This system not only ensures that users’ assets are always secured at a 1:1 ratio, but also sets a new standard for transparency through the combination of Merkle tree encryption and zero proof mechanisms. -knowledge. This method allows verification of a user’s total net worth balance without compromising individual privacy. This is an important step in ensuring trust and security in the ecosystem.

Open sharing of POR’s source code as well as active engagement with the community and security experts are important factors in improving the system. Feedback and independent audits enable continuous improvement, highlighting Binance’s commitment to not only maintaining but also enhancing industry standards. As we continue to enhance the POR system, we encourage a culture of transparency around user funds and accountability across the industry .

According to the latest POR version , on March 1, Binance held more than 103% of users’ BTC – meaning the bitcoins users deposited on our platform, plus an additional 3% reserve – nearly equal to 103.5% of users’ ETH and up to 110.6% if calculated in USDT.

Please note, the aggregated figures provided by blockchain market intelligence companies, while useful, do not accurately reflect user funds on Binance: some assets included in those calculations are capital Binance’s own operations. The most accurate source of information about user assets on Binance is our monthly POR audit.

A future built on transparency

The milestone of exceeding $100 billion in user funds is a clear sign that users increasingly trust Binance and the crypto industry in general. As more and more money is held transparently and securely by responsible actors like Binance, the future of the digital assets sector looks increasingly promising. Binance’s ongoing commitment to the proof-of-reserve system is to ensure user funds are safe and effectively managed while leading and promoting a culture of trust and transparency that benefits all Ecosystem.

Read more

• Binance Proof of Reserves: A look back at a year of increasing transparency of user assets
• How zk-SNARK improves Binance’s proof of reserve system
• Source code of POR

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