Binance’s User Assets Under Custody Surpass $100B – It seems that despite a series of actions by the U.S. Department of Justice against Binance and its co-founder Changpeng Zhao, the crypto exchange has remained largely unscathed, with its assets under custody exceeding $100 billion as of March 18.
According to the announcement, Binance users’ assets under custody have more than doubled since the beginning of the year, reaching $40 billion. “We hold all user funds at a 1:1 ratio, plus additional reserves, which anyone can verify using Binance’s proof-of-reserves (POR) system,” Binance staff stated.
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Adding: “Recent weeks have witnessed a remarkable, sustained uptick in digital asset prices, a trend that has undoubtedly played a significant role in elevating the value of user assets under Binance’s custody.” Binance’s proof-of-reserves indicate collateralization ratios exceeding 100% for all major cryptocurrencies and altcoins.
Despite this, experts caution that proof-of-reserves only offers partial insight into reserves, omitting liabilities necessary to calculate net equity. Binance CEO Richard Teng has asserted that the exchange’s capital structure is “debt-free.” The exchange stated: “Please note that the aggregate figures provided by blockchain market intelligence firms, while useful, are not a perfect representation of the amount of user funds on Binance.”
“Some of the assets included in such calculations are Binance’s own operational funds. The ultimate source of the most accurate information on user asset holdings on Binance are our monthly POR audits.” Binance made an announcement on March 12 regarding its decision to sever connections with its venture capital arm, Binance Labs, even though the latter has achieved an average return of over 14 times on invested projects, with its portfolio now valued at $10 billion.
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