The cryptocurrency exchange Binance has revealed that, as of March 18, the total value of its assets in custody surpassed $100 billion. This accomplishment is a substantial increase over the $40 billion that was made available during the year. In addition to the exchange's dedication to retaining user funds at a 1:1:1 ratio with additional assets, Binance attributes this rise to a number of causes, including a spike in the price of digital assets. The Binance proof-of-reserves (POR) technology, which enables the verification of 100% collateralization ratios in all major cryptocurrencies and altcoins, is one of the biggest contributors to this assurance.

Despite the U.S. Department of Justice taking legal action against the exchange and its co-founder, Changpeng Zhao, Binance is a business that is not going away easily. The exchange has gone so far as to emphasise how important its proof-of-reserves method is in demonstrating that it can comply with withdrawal requests from customers. Following FTX's bankruptcy, this approach was introduced in November 2022. It was revised in February 2023 to increase audit efficiency and transparency.

Concerns over the accuracy of user funds calculators provided by blockchain market research companies were also brought up by the panel. It made clear that while these numbers are useful, they might not accurately represent the total amount of user funds on Binance. The reason for this discrepancy is that some of the assets included in these calculations are really the exchange's operating cash. Binance recommends seeing its monthly POR audits for the most accurate information on user asset holdings.

Promising Crypto Fund Dissociates from Parent Firm

Coingape previously revealed that Binance has declared it will be cutting its connections with Binance Labs, its venture capital division. Although Binance Labs has generated an average return on investment of more than 14 times, and its portfolio is currently valued at $10 billion, the purpose of the separation is to make it more clear how independently the two companies operate. Although it is authorised to use the Binance trademark, Binance Labs is not associated in any way with the Binance cryptocurrency exchange or its related companies.