Binance Maintains Over 100% Reserves for 29 Straight Months

Binance has maintained a reserve ratio above 100% for 29 consecutive months despite rumors of the crypto exchange selling off a significant portion of its Bitcoin reserve, according to blockchain analytics firm CryptoQuant.

The reserve ratio is a key metric that shows whether an exchange holds enough assets to match customer balances. A ratio above 100% means that Binance has more reserves than the total customer balances on its platform, reducing insolvency risks.

Binance Maintains 100%+ Reserve

CryptoQuant analyst Maartun recently reported that Binance’s total customer balance stands at 633,092 BTC. Out of this, 606,143 BTC is held directly by Binance, while 26,948 BTC is stored as BTCB—a tokenized version of Bitcoin on the BNB Smart Chain—managed via third-party custody.

To verify the accuracy of this data, CryptoQuant cross-references Binance’s reported BTC exchange balances with on-chain Bitcoin network reserves. The figures match, reinforcing the transparency of Binance’s financial disclosures.

The report comes amid speculations that Binance is dumping its BTC holdings for USDC stablecoin. However, the exchange refuted the claims, stating that the move is just part of its standards accounting process. CryptoQuant analysis further reinforces these claims.

“Based on this analysis, Binance’s proof-of-reserve data appears healthy. Since they started publishing reports following the FTX collapse, their reserves have remained consistently above 100%. Despite the recent FUD on Crypto Twitter, there seems to be no cause for concern,” Maartun stated.

Binance started publishing proof-of-reserve (PoR) reports in late 2022 following the collapse of FTX. The FTX implosion, which unfolded in November 2022, revealed significant mismanagement of customer funds, prompting Binance and other exchanges to adopt PoR as a transparency measure to rebuild user trust.

Trusted Liquidity Hub

In another development, Binance has emerged as the top centralized exchange for crypto outflows, processing over a quarter of all BTC and nearly half of ETH withdrawals this month.

According to CryptoQuant, 6.40 million ETH were withdrawn from centralized exchanges in early March, with Binance accounting for 46% of those outflows. Similarly, 496,000 BTC left exchanges, with 27% coming from Binance.

While these numbers might initially raise concerns, analysts believe they reflect institutional accumulation, strategic asset reallocation, and confidence in Binance as a liquidity hub for large holders and institutions.

The post Binance Maintains Over 100% Reserves for 29 Straight Months appeared first on CryptoPotato.