The leading cryptocurrency exchange, Binance, has unveiled its Proof of Reserves (PoR) financial report, reassuring users about its digital holdings in the wake of concerns surrounding USDC coins due to Silvergate Bank’s issues.
The report confirms that Binance’s reserves exceed the amount required to cover users’ funds, demonstrating a surplus of over 100%.
However, following the troubles faced by Silvergate Bank, Binance’s USDC coin holdings underwent significant changes. In March, the exchange held USDC coins worth $3.4 billion, but by May, this figure had dropped dramatically to $23.9 million.
Responding to the situation, Binance opted to convert its USDC holdings into other cryptocurrencies like Bitcoin and Ether. Between March and May, the exchange purchased approximately $3.5 billion worth of Bitcoin and Ether, a value nearly matching the USDC coins lost during the same period.
Binance’s strong reserves and swift adaptation in converting USDC to other cryptocurrencies reflect their proactive approach in the face of market uncertainties. This strategy showcases their commitment to safeguarding user funds and maintaining stability.
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