Binance Surpasses $100 Billion in User Assets Under Custody

1. Binance’s user assets under custody exceed $100 billion, doubling since the year’s start.
2. The exchange emphasizes security with a 1:1 asset ratio and additional reserves, verifiable via proof-of-reserves system.
3. Despite regulatory scrutiny, Binance asserts a debt-free capital structure while addressing concerns over liabilities.

Amidst a flurry of records and all-time highs in the cryptocurrency industry, Binance has announced a significant milestone. Its user assets under custody is surpassing $100 billion as of March 18. Despite recent actions by the United States Department of Justice targeting the exchange and its co-founder Changpeng Zhao, Binance has demonstrated resilience and continued growth.

“In the past few weeks, there has been no shortage of records, all-time-highs, and crypto industry firsts,”

Binance

Binance’s assets under custody have more than doubled since the beginning of the year. In fact, it is soaring from $40 billion to over $100 billion.

The exchange emphasizes its commitment to security and transparency. It is holding all user funds at a 1:1 ratio, along with additional reserves. This can be verified using Binance’s proof-of-reserves (POR) system.

Recent weeks have witnessed a sustained uptick in digital asset prices, contributing significantly to the increase in the value of user assets under Binance’s custody.

Expert Insights and Concerns

While Binance’s proof-of-reserves currently show over 100% collateralization ratios for all major cryptocurrencies and altcoins. Experts caution that proofs-of-reserves may not provide a comprehensive view of an entity’s financial health.

Richard Teng, CEO of Binance, asserts that the exchange maintains a “debt-free” capital structure, addressing concerns about liabilities.

“Please note that the aggregate figures provided by blockchain market intelligence firms, while useful, are not a perfect representation of the amount of user funds on Binance: some of the assets included in such calculations are Binance’s own operational funds. The ultimate source of the most accurate information on user asset holdings on Binance are our monthly POR audits.”

Richard Teng

Binance clarifies that while blockchain market intelligence firms provide aggregate figures on user funds. These may not accurately reflect Binance’s user asset holdings, as some assets included in calculations are the exchange’s operational funds.

The exchange underscores the importance of its monthly POR audits as the ultimate source of accurate information on user asset holdings.

Venture Capital Arm Dissociation

In a separate announcement on March 12, Binance revealed its decision to cut ties with its venture capital arm, Binance Labs. Despite the latter’s impressive returns averaging over 14x on invested projects and a portfolio worth $10 billion.

Binance Labs is licensed by Binance to use its trademark but maintains no other relationship with the cryptocurrency exchange or affiliated entities.

As Binance continues to navigate regulatory challenges and expand its offerings, its achievement of surpassing $100 billion in user assets under custody underscores its position as a leading player in the cryptocurrency market.