Binance's user assets under custody surpass $100B
"In the past few weeks, there has been no shortage of records, all-time-highs, and crypto industry firsts," Binance staff wrote.
It appears that crypto exchange Binance has emerged to be largely unaffected by a series of U.S. Department of Justice actions against the exchange and its co-founder Changpeng Zhao, with its assets under custody surpassing $100 billion as of March 18.
As per the announcement, Binance users' assets under custody have more than doubled from $40 billion at the beginning of the year. "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 said, 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 currently show over 100% collateralization ratios for all major cryptocurrencies and altcoins. Experts have warned, however, that proof-of-reserves only includes half the relevant information on reserves and does not include an entity's liabilities to calculate its net equity. Richard Teng, CEO of Binance, has since claimed that the exchange's capital structure is "debt-free." The exchange stated:
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