Binance sold USDC for BTC & ETH after Silvergate bank collapse: PoR report

Cryptocurrency speech Binance released its latest proof-of-reserves (PoR) connected Aug. 1, offering transparency into its crypto reserves. However, the question of its USDC reserves astatine the clip of Silvergte's illness caught galore people’s attraction and became a taxable of treatment connected X.

The latest reserve audit suggests Binance holds much than capable crypto and currency to screen the idiosyncratic funds. The ratio of Binance's nett balances to its customers' nett balances is much than 100% for each its assets arsenic shown successful the snapshot below.

Binance plus reserve ratio to lawsuit funds. Source: Binance

While the study presents a steadfast fiscal concern for Binance, its USDC reserve movements post-Silvergate illness and the depeg of the stablecoin was the main taxable of discussion. The PoR shows that Binance’s USDC equilibrium decreased from $3.4 cardinal connected March 1st to $23.9 cardinal by May 1st.

Binance reserves equilibrium betwixt Dec. 2022- June 2023. Source: Binance

Binance started converting customer’s USDC to BUSD successful September internally, but astatine the clip it did clasp a important magnitude of USDC successful its reserves arsenic well. On-chain information suggests, close aft Silvergate collapsed connected March 12, Binance started converting its USDC reserves into Bitcoin (BTC) and Ether (ETH).

Twitter on-chain expert Aleksandar Djakovic noted that Binance purchased astir 100,000 BTC and 550,000 ETH betwixt March 12, - May 01, totalling astir $3.5 billion, the aforesaid magnitude arsenic the surplus of USDC they had.

Binance didn’t respond to Cointelegraph’s requests for comments astatine the clip of writing.

Related: USD-backed stablecoin aviator task launched by Pacific land federation of Palau

The revelation astir Binance’s USDC reserves has go a blistery topic, particularly aft Coinbase CEO Brian Armstrong quipped during the institution Q2 net telephone gathering that Binance has sold USDC for different stablecoin.

PoR became a fashionable mode for crypto exchanges to attest their holdings and stock the aforesaid with the nationalist arsenic a mode of transparency aft the illness of the FTX crypto exchange. The calls for much transparency grew successful the crypto ecosystem aft FTX became crippled contempt founders claiming its fiscal concern was well-balanced until its illness successful November 2022.

Collect this nonfiction arsenic an NFT to sphere this infinitesimal successful past and amusement your enactment for autarkic journalism successful the crypto space.

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