{"id":20850,"date":"2023-08-08T09:48:31","date_gmt":"2023-08-08T09:48:31","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/binance-sold-usdc-for-btc-and-eth-after-silvergate-bank-collapse-por-report\/"},"modified":"2023-08-08T09:48:33","modified_gmt":"2023-08-08T09:48:33","slug":"binance-sold-usdc-for-btc-and-eth-after-silvergate-bank-collapse-por-report","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/binance-sold-usdc-for-btc-and-eth-after-silvergate-bank-collapse-por-report\/","title":{"rendered":"Binance sold USDC for BTC and ETH after Silvergate Bank collapse: PoR report"},"content":{"rendered":"
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Cryptocurrency exchange Binance released its latest proof-of-reserves (PoRs) on Aug. 1, offering transparency into its crypto reserves. However, the movement of its USD Coin (USDC) reserves at the time of Silvergte\u2019s collapse caught many people\u2019s attention and became a topic of discussion on X (formerly Twitter).<\/p>\n

The latest reserve audit\u00a0suggests Binance holds more than enough crypto and cash to cover user funds. The ratio of Binance\u2019s net balances to its customers\u2019 net balances is more than 100% for all its assets as shown in the snapshot below.<\/p>\n

Binance asset reserve ratio to customer funds. Source: Binance<\/em><\/figcaption><\/figure>\n

While the report presents a healthy financial situation for Binance, its USDC reserve movements post-Silvergate collapse and the depeg of the stablecoin were the main topics of discussion. The PoR shows that Binance\u2019s USDC balance decreased from $3.4 billion on March 1 to $23.9 million by May 1.<\/p>\n

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Binance reserves balance between December 2022\u2013June 2023. Source: Binance<\/em><\/figcaption><\/figure>\n

Binance started converting customer\u2019s USDC to Binance USD in September internally,\u00a0but at the time, it did hold a significant amount of USDC in its reserves as well. On-chain data suggests that right after Silvergate collapsed on March 12, Binance started converting its USDC reserves into Bitcoin (BTC) and Ether (ETH).<\/p>\n

Twitter on-chain analyst Aleksandar Djakovic noted<\/a>\u00a0that Binance purchased approximately 100,000 BTC and 550,000 ETH between March 12 and May 1, totaling around $3.5 billion, the same amount as the surplus of USDC i had. <\/p>\n

Binance didn\u2019t respond to Cointelegraph\u2019s requests for comments at the time of writing.<\/p>\n

Related: <\/em><\/strong>USD-backed stablecoin pilot project launched by Pacific island nation of Palau<\/em><\/strong><\/p>\n

The revelation around Binance\u2019s USDC reserves has become a hot topic, especially after Coinbase CEO Brian Armstrong quipped during the company\u2019s Q2 earnings call meeting that Binance has\u00a0sold USDC for another stablecoin.<\/p>\n

PoRs have become a popular way for crypto exchanges to attest their holdings and share the same with the public as a way of transparency after the collapse of the FTX crypto exchange. Calls for more transparency grew in the crypto ecosystem after FTX became crippled despite founders claiming its financial situation was well-balanced until its collapse in November 2022.<\/p>\n

Collect this article as an NFT to preserve this moment in history and show your support for independent journalism in the crypto space.<\/p>\n

Magazine: <\/em><\/strong>Yuan stablecoin team arrested, WeChat\u2019s new Bitcoin prices, HK crypto rules: Asia Express<\/em><\/strong><\/p>\n<\/div>\n