The public will only have confidence in centralized crypto platforms – and the wider crypto ecosystem – if they commit to making their reserves verifiable by anyone, anytime, thus demonstrating that user assets are not used for unauthorized purposes. This approach covers two out of six Principles for centralized crypto exchanges articulated by Changpeng Zhao, Binance’s founder and CEO: being risk-averse with users’ funds and sharing live proof of assets.
All user assets held on Binance are backed at a 1:1 ratio, plus some reserves, and our capital structure is debt-free. We’ve built a proof-of-reserves (PoR) system that uses a cryptographic tool called Merkle Tree to enable users to verify their funds custodied on our platform.
Don’t take our word for it – see for yourself. Binance has disclosed its wallet addresses for major tokens on BTC, ETH, BSC, BNB, and TRX networks, allowing anyone to see the assets right on the blockchain. The list will grow as new networks and tokens are added.
To promote interoperability within the digital asset space, Binance makes some popular tokens available on blockchains other than their native ones, offering the “wrapped” versions of such assets. These B-tokens are designed to track the value of the original assets at a 1:1 ratio. The value of wrapped tokens is secured by locking the collateral of the original asset on its native network. Using this page, anyone can verify the collateral backing each wrapped token issued by Binance.
