Binance to Begin Proof of Reserves for Complete Transparency, Says CZ

Binance is fully committed to transparency, according to CEO Changpeng ‘CZ’ Zhao. In order to allay future uncertainties and worries regarding the reserve balance, CZ promised his 7.3 million Twitter followers that Binance would also begin proof-of reserves. It has released details on its cold wallet reserves as proof.

In his initial tweet on transparency, CZ called for exchanges to do “Merkle-tree proof of reserves,” a data structure that encodes blockchain data. While blockchains are inherently transparent, exchanges holding user funds need to demonstrate they hold sufficient reserves to cover those funds.

Binance’s proof-of-reserves (POR) system embodies our commitment to safeguarding user funds and maintaining transparency. The move towards greater transparency aims to build trust and confidence within the cryptocurrency community, especially following recent market volatility.

As of November 2025, Binance’s POR implementation continues to evolve, with plans for more frequent and comprehensive audits. This ongoing commitment reflects Binance's dedication to maintaining the highest standards of transparency and security for its users' assets.