Binance has disclosed that the value of the user assets under custody has surpassed $100B
Leading crypto exchange Binance has revealed that it now holds more than $100 billion of user assets in the crypto space. This milestone reflects the trust users have in the firm as a custodian of their funds.
“The journey past the $100 billion threshold is not just an arbitrary number – it’s a testament to the continued confidence in Binance and the robust performance of the crypto markets. 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,” the exchange said.
It is worth noting that since Binance began disclosing user asset holdings through its proof-of-reserves (POR) system in November 2022, this is the first time the aggregate value of user assets on the exchange has soared past the $100 billion mark.
According to the announcement, all user funds are backed at a ratio of 1:1 and fully verifiable through the exchange’s Proof of Reserves (POR). The exchange also stated that this system sets a new standard for transparency by combining Merkle tree cryptography and zero-knowledge proofs to verify total net user asset balances while protecting individual privacy.
The firm cautioned that while aggregate figures provided by blockchain market intelligence firms are useful, they do not accurately represent the amount of user funds on Binance. For precise data, they recommended using its monthly POR audits.
Additionally, the exchange credited the favorable market conditions for this milestone, citing them as the reason for the platform’s steadily growing inflows. According to the announcement, this growth serves as a clear indicator of the growing confidence in Binance and the crypto industry at large.
Thriving Amidst Troubles
With this development, it appears like the exchange is not largely affected by the troubles it has been going through. Binance faced a regulatory crackdown last year which led to the firm paying billions in fines and the step down of Changpeng Zhao from his position as CEO.
Earlier this month, Binance-branded cryptocurrency BNB saw a 5% decrease following the exchange detachment from its venture capital arm Binance Labs. At the time of writing, BNB trades at $547.02 which represents a 5.08% decrease in the last 24 hours.
