Binance's Proof of Reserves Program Celebrates Two Years, Maintaining Industry-Leading Asset Coverage

As Binance approaches the second anniversary of its Proof of Reserves (PoR) program, it reports that its PoR system currently covers 35 tokens with over $150 billion in reserve assets. This level of asset coverage ranks among the best in the industry, reflecting Binance's commitment to transparency and user trust.

Proof of Reserves (PoR) is a transparency measure that allows centralized exchanges (CEX) to demonstrate that they hold enough assets to fully cover all user deposits. PoR is crucial for maintaining user trust, as centralized exchanges control customer funds and may pose a risk of misuse. By regularly providing PoR disclosures, exchanges showcase the stability and safety of their asset reserves, thereby enhancing user trust.

Other major exchanges have also implemented PoR programs. For example, OKX's PoR program covers 22 assets with a reserve of $20.2 billion; Bitget reports its reserves at $3.98 billion, covering 4 assets; Bybit's PoR covers 40 assets, but its total user asset scale is relatively small.

These PoR reports typically display the number of covered assets, total asset reserves, and reserve ratios of major assets, demonstrating whether the exchange meets or exceeds 100% of user deposits. Some exchanges only cover major assets like BTC, ETH, USDT, and USDC, while others include a broader range of assets to prove that even niche tokens have sufficient reserves.

Total reserve asset data source: Defillama

Binance's monthly PoR report aims to enhance the transparency of user asset support on the platform. The October report shows that the reserve ratios for major assets exceed 100%, with BTC at 106%, ETH at 100.6%, and USDT at 111%. Binance states that these reserve ratios help ensure the safety and liquidity of user funds.

Source: https://www.binance.com/en/proof-of-reserves

Since the launch of the Proof of Reserves (PoR) program in 2022, Binance has introduced advanced cryptographic technologies, including zk-SNARKs and Merkle tree structures. These methods allow users to independently verify whether their assets are included in the total reserves without compromising privacy.

In addition to PoR transparency, Binance maintains a zero-debt capital structure aimed at reducing financial risks during market volatility. Furthermore, Binance has established the Secure Asset Fund for Users (SAFU), a dedicated emergency reserve designed to protect user assets in extreme circumstances.