Ethereum (ETH) and Solana (SOL) take center stage in Binance’s latest Proof of Reserves (PoR) audit published on June 1. As the world’s largest crypto exchange in terms of trading volume, Binance reaffirms that all customer assets are fully backed at a 1:1 ratio. However, the audit reveals a striking detail: the exchange holds no excess reserves of ETH and SOL beyond customers deposits. While this aligns with Binance’s policy of fully backing user funds, it also raises questions about how the exchange manages its asset reserves—-and which assets they prioritize holding internally.
Binance Shows Ethereum And Solana 100% Held By Customers
A report by MartyParty on X (formerly Twitter) points out that Binance’s June audit, verified using zk-SNARK cryptography, shows Ethereum and Solana balances closely matching user deposits, with only a minute surplus remaining under the exchange’s control. Ethereum holdings stand at 5,337,118.325 ETH, nearly identical to the net balance of Binance’s customers, which is 5,337,110.337 ETH.
The same applies to Solana, with the crypto platform holding 23,017,153.973 SOL, while customers have deposited a total of 23,017,150.874. This has resulted in a 100.00% reserve ratio for Ethereum and Solana, inherently suggesting that Binance does not currently maintain any buffer or over-collateralization in either cryptocurrency.
Although this practice technically satisfies Binance’s commitment to fully backing users’ funds on a 1:1 basis, the absence of excess ETH or SOL may signal a strategic decision to allocate reserves toward other digital assets. Moreover, it could reflect shifting user demand or changes in internal treasury decisions, especially when compared with other cryptocurrencies where the exchange maintains a clear surplus.
Here’s What The Exchange Is Holding
While Ethereum and Solana are matched almost perfectly to customer net balances, Binance holds significantly more of other assets, suggesting a stronger liquidity cushion in key cryptocurrencies and stablecoins. Notably, stablecoins hold the most reserves on the platform, with assets like BUSD, USDC, FDUSD, and USDT showing a 161.86%, 153.01%, 112.86%, and 101.52% reserve ratio, respectively. This highlights a possible preference for holding a significant surplus in these coins to maintain stability and liquidity.
Bitcoin reserves on Binance are reported at 606,080 BTC, exceeding customer balances of 593,411 BTC, giving the exchange a reserve ratio of 102.13%. Interestingly, the platform also maintains surplus reserves in coins like XRP and Shiba Inu (SHIB). However, the highest reserve ratios are seen in Litecoin (LTC), Binance Coin (BNB), and Dogecoin (DOGE).
LTC shows a robust 113.61% ratio, indicating that the exchange holds several million coins beyond what is needed to cover user deposits. Additionally, BNB is over-backed with a 111.74% ratio, reflecting a balance sheet that includes approximately 7.33 million tokens to meet Binance customers’ deposits of 6.45 million. Dogecoin, on the other hand, highlights a notable over-collateralization, with a reserve ratio of 110.99%. Currently, the platform holds a net balance of 17.01 billion DOGE, compared to customers’ net balance of 15.3 billion tokens.
Featured image from Adobe Stock, chart from Tradingview.com
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