Transparency of Funds
The public will only have confidence in centralized crypto platforms – and the wider crypto ecosystem – if they commit to user assets being verifiable by anyone, anytime, thus demonstrating that they are not used for unauthorized purposes. This approach covers two out of six Principles for centralized crypto exchanges articulated by CZ, Binance’s founder and CEO: being risk-averse with users’ funds and sharing live proof of assets.
Proof of Reserves (PoR) | Merkle Tree | ZK-SNARKs
All user assets held on Binance are backed at a 1:1 ratio, plus some reserves. Our capital structure is debt-free. We’ve built a proof-of-reserves (PoR) framework that uses cryptographic tools called Merkle Tree and – in an industry first – zero-knowledge proofs to enable users to reliably verify their funds custodied on our platform. This solution ensures that anyone can verify the overall holdings of user funds on Binance while sensitive information on individual customers’ balances remains protected. We have open-sourced the code underlying our PoR solution so that other centralized exchanges whose operating models are similar to ours could use it to enhance the transparency of user funds.
Binance’s Wallet Addresses
Don’t take our word for it – see for yourself. With each proof-of-reserves snapshot, we disclose the addresses of Binance's wallets that hold user funds, thus allowing anyone to see the assets right on the blockchain. To see the downloadable list of current addresses, log in to our Binance account and head to the proof-of-reserves verification page.
Proof of Collateral for B-Tokens
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.