Binance Reports 102% Bitcoin Surplus, 206% for BUSD in May Proof-of-Reserves

Binance, the world's largest cryptocurrency exchange, has released an update on its crypto reserves, revealing a surplus that bolsters confidence in the platform's stability following the FTX fallout. The exchange holds 102% of the Bitcoin (BTC) required to cover user deposits and a 206% surplus for Binance USD (BUSD). This disclosure comes as part of Binance's 30th monthly Proof-of-Reserves (PoR) report, which was captured on May 1. The report details reserves for 37 assets, including 616,886 BTC, which exceeds the 604,886 Bitcoins held by users. Other tokens like ETH, USDT, and SOL maintain their reserves above the 1:1 target, ensuring the platform can honor withdrawal requests without drawing on corporate funds.

Binance's por statements have become a preferred transparency tool in the sector after the collapse of FTX in 2022. The exchange backs its numbers with zero-knowledge proofs and Merkle tree verification, allowing users to verify their balances without exposing the data of others. Corporate wallets are not included in the calculation to prevent double-counting. At press time, Binance users held Bitcoin valued at $58 billion, down 1.35% from April, while 5.28 million ETH slid 3.36% to roughly $9.5 billion. Additionally, BNB balances dipped 0.74% to 39.24 million, about $23 billion. At the same time, USDT deposits rose 2.61% to 29.05 billion, indicating a shift toward dollar-pegged tokens amid market turbulence. Non-Bitcoin assets altogether stood at nearly $82 billion.

Binance has issued an attestation every month since the FTX collapse, contending that public on-chain evidence fosters confidence more effectively than private audits. Regulators still debate formal reserve mandates, yet Binance now supplies one of the longest uninterrupted data sets in the industry. The exchange's financial stability has paved the way for major innovations in the financial sector, including partnerships with governments to shape blockchain infrastructure in emerging markets. Binance has teamed up with Kyrgyzstan to build a nationwide crypto payment network and roll out blockchain education programs. The company will also deploy its pay-and-receive infrastructure, allowing merchants and users nationwide to transact with crypto. The former Binance CEO was also tapped for an advisory role on Kyrgyzstan’s National Crypto Council, emphasizing Binance’s commitment to advising governments on regulatory frameworks.

Trust in Binance has played a key role in its acceptance by governing bodies worldwide, paving the way for major innovations in the financial sector. The platform’s Binance Pay service continues to transform global commerce. The most recent implementation comes from the Kingdom of Bhutan. Over 130,000 tourists are expected to visit Bhutan in 2025. Following the partnership, Bhutan will become the first country to adopt crypto payments nationwide for the tourism sector. Visitors to Bhutan can now use their crypto balances for everything from airline tickets and hotel stays to local purchases. Merchants gain instant settlement of crypto transactions in the local currency. Before this, Binance Pay announced a partnership with a leading European web3 payment solutions provider to expand crypto payments across Europe in its quest to be a leading cross-border financial provider.

Despite the transparency provided by Binance's PoR system, there are still gaps in the assessment of overall solvency. Binance’s PoR currently only verifies on-chain assets and does not audit off-chain liabilities like loans or derivatives exposures that could impact overall solvency. Additionally, Binance uses Merkle proof systems to provide faster, user-verifiable snapshots of on-chain reserves, but this approach lacks independent third-party audits to verify asset ownership and off-chain liabilities. In 2022, the exchange faced mass withdrawals, with users moving out over $1 billion in the aftermath of the FTX collapse. Despite the pressure, Binance held firm, and the exchange has published its reserves every month since then. However, no fortress is unbreakable, and when market confidence shatters, even the strongest might struggle.

Ask Aime: Binance's new PoR report shows 102% of Bitcoin reserves, boosting confidence post-FTX fall.