Users Can Now Verify the Bitcoin They Own on Binance via Merkle Tree
The world’s largest cryptocurrency exchange – Binance – introduced its Proof of Reserves (PoR) system to display to users the exact amount of its crypto reserves.
The feature will initially show only bitcoin’s holdings, while other coins will follow in the future.
Binance has taken some additional measures to reaffirm its customers’ trust during the turbulent times following the FTX crash.
In a recent announcement, the company disclosed the launch of a Proof of Reserves (PoR) system showing that its on-chain reserve is composed of 582,485.9302 BTC. Customer Net Balance (Equity – Debt) equals 575,742.4228 BTC.
The trading venue vowed to release the PoR for other cryptocurrencies in two weeks. Binance will also hire third-party auditors to check the results.
CEO Changpeng Zhao said the crypto community currently demands more from exchanges, and the firm is “pleased” to provide such clarity:
“As Binance’s user community is exponentially larger than the next largest exchange, this is a massive undertaking and will take a few weeks to develop the data for the majority of our assets in custody. We are working to get the next update out as quickly as possible to meet the community’s expectations,” he added.
The platform topped up its SAFU insurance fund to $1 billion following the FTX meltdown. Those assets could be distributed to clients in case of future emergencies.
Binance has also introduced an industry recovery fund that could help other projects that experience liquidity issues.
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