The world’s leading crypto exchange Binance has enabled Proof of Reserves for BTC in order to provide transparency of user funds.
This comes following the recent disclosure of Binance’s hot and cold wallet addresses. This latest update shows the Proof of Reserves for BTC and an update using the Merkle Tree data structure for users to verify BTC holdings.
Binance said in a statement that it is the first iteration of the feature, with verification for ETH, USDT, USDC, BUSD and BNB coming soon.
Binance is also working to onboard an independent third party auditor to validate the Merkle Tree data.
Changpeng Zhao ‘CZ’, CEO & Founder of Binance, said: “Given recent events, it is understandable that the community will demand more from crypto exchanges, far more than what is currently required of traditional financial institutions. That’s why we’re pleased to provide this latest feature for our users to verify their funds.”
CZ also mentioned that Proof of Researves for other crypto assets would be enaled soon.
“As Binance’s user community is exponentially larger than the next largest exchange, this is a massive under-taking and will take a few weeks to develop the data for the majority of our assets in custody. We are working to get the next update out as quickly as possible to meet the community’s expectations,” CZ added.
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