This morning, Binance released its Proof of Reserves (PoR), showing that the reserve ratios of major assets exceed 100%
BTC reserve ratio 102.13% (holding 606,000)
USDT reserve ratio 101.52% (29.27 billion)
ETH/SOL reserve ratio 100% (5.337 million ETH)
BNB reserve ratio 111.74% (44.536 million)
The most surprising is USDC's reserve ratio reaching 153.01%—far exceeding other stablecoins.
This may reflect a surge in institutional demand: USDC has become the preferred choice for traditional funds due to its compliant transparency (fully backed + anchored by US Treasuries).
Arbitrage opportunities driving high reserve ratios may indicate that Binance is using USDC for on-chain to off-chain interest rate arbitrage (such as the spread between US Treasury yields and on-chain lending rates).
Liquidity management strategy: Excess reserves may be used to respond to extreme redemptions, avoiding a repeat of the Silicon Valley Bank incident (in 2023, USDC de-pegged to $0.90 due to banking risks).