Binance has released a reserve report outlining coverage levels for major cryptocurrencies like Bitcoin, Shiba Inu (SHIB), XRP, and Solana (SOL).
Complete Backing of SHIB, XRP, and SOL Reserves
The report showed that the amount of cryptocurrency held by the platform aligns with user balances. For Shiba Inu, users held 54.83 trillion SHIB, while Binance held 55.29 trillion SHIB. This includes over 55.28 trillion SHIB stored on the platform and approximately 1.55 trillion SHIB held under third-party custody, resulting in a reserve ratio of 100.84%. For XRP, users had 2.28 billion XRP, and Binance held a total of 2.31 billion XRP, most of which, about 2.26 billion XRP, were stored on the exchange, leading to a reserve ratio of 101.22%. Similarly, Binance users held 31.06 million SOL, while the platform had 32.04 million SOL, with around 31.98 million SOL held directly by Binance and about 55,543 SOL stored via outside custodians, resulting in a reserve ratio of 103.13%.
Verification and Validation Methods of Binance Balances
To ensure full backing of user funds, Binance employs a system known as Proof of Reserves. This system only covers client funds, while Binance's corporate holdings are kept separate. The exchange utilizes a cryptographic structure called a Merkle Tree to store and prepare the report. Every user has access to their own Merkle Leaf and Record ID, which allows them to verify that their balances were included in the latest report. This system gives users the ability to confirm that their funds are fully backed. Binance also implements zk-SNARKs, a type of zero-knowledge proof, to enhance the process, enabling confirmation that all individual balances constitute the total user asset pool without disclosing account details.
Asset Changes on the Platform
In addition to SHIB, XRP, and SOL, Binance shared broader data. Bitcoin holdings dropped by 19,400 BTC from June, totaling 573,000 BTC, which is a 3.27% decrease. ETH balances decreased by 285,000 ETH, now standing at 5.051 million ETH, representing a 5.34% drop. On the other hand, Tether (USDT) saw an increase, rising by 760 million USDT to a total of 29.59 billion USDT, a 2.64% increase.
Binance's reserve reports provide users with a clear view of asset management and backing across the platform, especially in light of recent developments in the crypto market.
