- Binance’s assets under custody have surpassed $100 billion, more than doubling since the start of 2022 despite recent legal troubles.
- Binance says its 1:1 reserves plus additional reserves ensure all user funds are held securely, though experts caution that proofs-of-reserves have limitations.
- Despite splitting from its $10 billion venture arm Binance Labs, Binance’s growth remains meteoric and it holds over $100 billion under custody.
Binance has hit a major milestone, with the crypto exchange’s assets under custody surpassing $100 billion on March 18. This achievement comes despite recent legal troubles in the United States.
Binance’s Meteoric Growth
Binance’s assets under custody have more than doubled from $40 billion at the beginning of 2022. According to the company, the increase is partly driven by the recent uptick in crypto prices.
Binance says it holds all user funds at a 1:1 ratio plus additional reserves. It uses a proof-of-reserves system that anyone can verify. Experts warn that proofs-of-reserves don’t provide the full picture, as they don’t account for liabilities.
CEO Claims Debt-Free Capital Structure
Richard Teng, CEO of Binance, has claimed the exchange has a debt-free capital structure. Binance says figures from blockchain analysts, while useful, don’t perfectly represent user funds on the platform. It points to its monthly proof-of-reserves audits as the ultimate source.
Split From Venture Arm Despite $10 Billion Portfolio
In March, Binance announced it would cut ties with Binance Labs, its venture capital arm. Binance Labs has averaged 14x returns and has a portfolio worth $10 billion. It will retain the Binance trademark but operate independently.
Binance’s growth has been meteoric despite its legal challenges. With over $100 billion now under custody, it remains a dominant player in crypto. The exchange’s future depends on how it navigates regulations across different jurisdictions.
