Binance, a leading cryptocurrency exchange, has released its updated Proof of Reserves (PoR), offering transparent insights into its holdings for major cryptocurrencies including Bitcoin (BTC), Shiba Inu (SHIB), XRP, and Solana (SOL). The report highlights Binance's commitment to user fund security by demonstrating how user balances are fully aligned with the exchange's reserves through verifiable on-chain tools.
SHIB, XRP, and SOL Reserves Stand Fully Backed
The latest PoR report provides detailed coin coverage, showcasing the platform's substantial reserves against user balances for Shiba Inu (SHIB), XRP, and Solana (SOL). The findings affirm that Binance maintains more than sufficient digital currency to match all user holdings.
- Shiba Inu (SHIB): Binance holds 55.29 trillion SHIB, comfortably exceeding the 54.83 trillion SHIB held by users. This includes over 55.28 trillion SHIB directly on the platform and approximately 1.55 trillion SHIB under third-party custody, resulting in a robust reserve ratio of 100.84%.
- XRP: The report also indicates strong backing for XRP. With users holding 2.28 billion XRP, Binance's total reserves stand at 2.31 billion XRP. Approximately 2.26 billion XRP are stored on the exchange, with an additional 49.87 million XRP in third-party custody, yielding an impressive reserve ratio of 101.22%.
- Solana (SOL): Solana follows a similar secure pattern. Binance users collectively hold 31.06 million SOL, while the exchange maintains 32.04 million SOL available. Around 31.98 million SOL are held directly by Binance, and roughly 55,543 SOL are with external custodians, resulting in a coverage ratio of 103.13%.
How Binance Ensures and Verifies Balances with Proof of Reserves
Binance's Proof of Reserves system is specifically designed to cover customer funds, keeping corporate holdings separate for clarity. The exchange leverages sophisticated cryptographic structures to generate these reports:
- Merkle Tree: This cryptographic data structure is used to organize user data and combine it into a single, final output known as the Merkle Root. Each user receives their unique Merkle Leaf and Record ID, enabling them to independently verify that their balances were included in the latest report. This system allows users to confirm that their funds are indeed fully backed.
- zk-SNARKs: To further enhance the verification process, Binance incorporates zk-SNARKs (Zero-Knowledge Succinct Non-Interactive Argument of Knowledge). This advanced cryptographic tool allows the exchange to confirm that all individual balances sum up to the total user asset pool without revealing sensitive account details. zk-SNARKs also ensure that all balances are positive, changes to the Merkle Tree are valid, and the total user sum remains unaltered.
PoR Highlights Broader Asset Changes
Beyond SHIB, XRP, and SOL, Binance's latest PoR provides a snapshot of its overall asset management:
- Bitcoin (BTC) holdings decreased by 19,400 BTC (3.27%) from June, bringing the total to 573,000 BTC.
- Ethereum (ETH) balances also saw a decrease of 285,000 ETH (5.34%), now standing at 5.051 million ETH.
- Conversely, Tether (USDT) holdings increased by 760 million USDT (2.64%), reaching a total of 29.59 billion USDT.
Binance's commitment to releasing these monthly PoR reports provides users with ongoing transparency regarding asset management and backing across the platform. This proactive approach, also adopted by other top crypto exchanges, plays a crucial role in rebuilding and maintaining trust within the crypto ecosystem following events like the collapse of FTX Derivatives Exchange.
July 2025, Cryptoniteuae