In the latest news regarding the ecosystem, the Binance exchange has shared Proof of Reserves, outlining the large amount of cryptocurrency that this exchange holds, including Bitcoin, Shiba Inu, XRP, and Solana. The report demonstrates how user balances align with the exchange's reserves through verifiable on-chain tools.
Reserves of SHIB, XRP, and SOL are Fully Supported
Notably, the report pointed out the coverage of the platform's currency, including the number of Shiba Inu (SHIB), XRP, and Solana (SOL) that the platform holds compared to the number of users stored.
The numbers show that Binance holds enough of each type of cryptocurrency to match the users' balances.
For Shiba Inu, users hold 54.83 trillion SHIB, while Binance has 55.29 trillion SHIB.
This figure includes over 55.28 trillion SHIB stored on the platform and about 1.55 trillion SHIB held by third parties. This gives SHIB a reserve ratio of 100.84%.
It is noteworthy that XRP also has strong support, as reflected in the trading platform's reserve report. Customers have 2.28 billion XRP in their accounts.
Binance holds a total of 2.31 billion XRP. Most of this, approximately 2.26 billion XRP, is stored on the exchange.
Additionally, about 49.87 million XRP are being held by third parties. This results in a reserve ratio of 101.22%.
Solana also has a similar model. Binance users hold 31.06 million SOL, while the platform has 32.04 million SOL available for trading.
According to the update, about 31.98 million SOL are directly held by Binance. Notably, approximately 55,543 SOL are stored through external custodial units. This gives Solana a coverage ratio of 103.13%.
How Does Binance Check and Verify Balances?
To ensure that users' funds are fully secured, Binance uses a system called Proof of Reserves.
This report only includes customer funds. The holdings of Binance itself are separate from what is shown in the report.
This exchange uses a cryptographic structure called Merkle Tree to store and prepare reports.
By design, this tree helps organize user data and combine it into a single final output known as the Merkle Root.
Each user has access to their own Merkle Leaf and Record ID, allowing them to check whether their balance has been included in the latest report.
This system allows users to verify that their funds are fully secured. Binance also uses zk-SNARK, a type of zero-knowledge proof, to enhance the process.
With this tool, the exchange can verify that all individual balances constitute the total assets of users without disclosing account details.
This tool ensures that all balances are positive, changes made to the Merkle Tree are valid, and there are no changes in the total amount of users' funds.
PoR Highlights Changes in Broader Assets
It is worth mentioning that besides SHIB, XRP, and SOL, Binance also shares broader data.
The amount of Bitcoin held has decreased by 19,400 BTC since June, bringing the total to 573,000 BTC. This decrease is 3.27%.
The ETH balance has also decreased by 285,000 ETH, now totaling 5.051 million ETH, corresponding to a decrease of 5.34%.
On the other hand, Tether (USDT) recorded a growth of 760 million USDT, bringing the total to 29.59 billion USDT, corresponding to an increase of 2.64%.
Binance continues to share these reports monthly, providing users with a clear view of asset management and support across the platform. Other major cryptocurrency exchanges have also implemented the PoR model, a move that helps maintain trust after the collapse of the FTX derivatives exchange.
