Following our recent announcement outlining our commitment to transparency, Binance is releasing its Proof of Reserves (PoR) System, which is the next step in our effort to provide transparency on user funds.
What is Proof of Reserves (PoR)?
When we say Proof of Reserves, we are specifically referring to those assets that we hold in custody for users. This means that we are showing evidence and proof that Binance has funds that cover all of our users assets 1:1, as well as some reserves.
When a user buys one bitcoin token, Binance buys one bitcoin token and holds that specific token until the user decides to sell or swap it for another asset. It is important to note that this does not include Binance’s corporate holdings, which are kept on a completely separate ledger.
Our commitment to our community remains the same as it has always been
What this means in actual terms is that Binance holds all user assets 1:1 (as well as some reserves), we have zero debt in our capital structure and we have made sure that we have an emergency fund (SAFU fund) for extreme cases.
Read on to see more information on what we have built to allow people to check their funds are safe with Binance.