Binance's Bitcoin Reserves Are Overcollateralized, Says Audit
Binance, the world’s largest crypto exchange by trading volume, released a new audit on Wednesday from global financial audit, tax and advisory firm Mazars showing that Binance's customer bitcoin reserves are overcollateralized.
"At the time of assessment, Mazars observed Binance controlled in-scope assets in excess of 100% of their total platform liabilities," said Mazars in an announcement. The exact percentage was 101%.
The collapse of centralized crypto exchange FTX due to liquidity issues has rivals rushing to improve transparency around their financial reserves.
The report was meant to assure customers that their bitcoin (BTC) assets are collateralized, exist on the blockchain and are in Binance’s control. Mazars took a snapshot of Binance’s total reserves and liabilities on Nov. 22 to perform a collateralization analysis. Assets included were customers’ spot, options, margin, futures, funding, loan and earn accounts for BTC and wrapped bitcoin (BBTC and BTCB) held on the Bitcoin, Ethereum, BNB Chain and Binance Smart Chain blockchains.
Read more: 'Proof of Reserves’ Emerges as a Favored Way to Prevent Another FTX