Binance Leads, Coinbase Lags: Who’s Really Backing Your Crypto

Key Highlights

• Binance and OKX consistently maintain reserve ratios above 100% with timely, transparent monthly Proof-of-Reserves.

• Coinbase, despite its size and user base, has yet to publish a single Proof-of-Reserves report.

Since the collapse of FTX in 2022, the Crypto market has recorded a surge in demand for transparency. In the wake of increasing demands for transparency in the crypto industry, Proof of Reserves (PoR) has become a crucial benchmark for evaluating the reliability and solvency of exchanges.

 The method allows trading platforms to demonstrate that all user assets are fully backed, offering users peace of mind amid growing concerns around custodial safety. 

Binance's Proof of Reserve report reveals ratios exceeding 100% for various cryptocurrencies, ensuring customer net balances are fully backed. Notable ratios include BTC at 100.45%, BNB at 112.73%, and USDC at 141.28%, highlighting robust exchange and third-party custody balances.

Binance Leads the Way 

Binance stands out as the most consistent and transparent exchange when it comes to Proof of Reserves. The platform has maintained a Reserve Ratio well above 100%, consistently ensuring that it holds more assets than the liabilities owed to its users. 

Monthly reports are not only timely but detailed, reinforcing trust within its massive user base. 

OKX 

OKX follows closely, with a solid track record of maintaining Reserve Ratios above 100%. While its ratios typically trail just behind Binance, the consistency in monthly reporting has earned the platform a strong reputation among serious crypto traders. OKX has proven it understands the critical importance of transparency in today’s regulatory and market environment.

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Bybit Shows Notable Progress

Bybit has improved significantly in recent months. Previously publishing PoR reports every two months, the exchange has now shifted to monthly updates, a welcome move for user confidence. 

With Reserve Ratios fluctuating between 105% and 115%, Bybit provides a reassuring buffer above the 100% mark. This extra margin suggests a proactive approach to asset security, even though there's still room to grow in consistency and visibility.

Kraken

Kraken continues to maintain a Reserve Ratio above 100%, but has only released four PoR reports since November 2022. While the data available is sound, the lack of frequency undermines its reliability in the eyes of more vigilant users.

 In a sector that values real-time transparency, Kraken needs to align its reporting with the more dynamic practices of its peers.

Coinbase

Coinbase Surprisingly, Coinbase has not published a single Proof-of-Reserves report. For a publicly traded company operating at such a large scale, this complete lack of disclosure raises serious questions about transparency and accountability. 

As user expectations evolve, Coinbase’s absence from the PoR conversation may impact its credibility with more security-conscious investors.

Why it Matters 

With user trust becoming increasingly tied to how open and transparent exchanges are about their asset backing, Proof of Reserves is no longer optional, it's essential. Binance and OKX have emerged as the leaders, setting a gold standard with consistently high Reserve Ratios and timely reporting. 

Bybit and Kraken are improving, but the lack of urgency from Coinbase in this area is a concern that shouldn't be overlooked. For crypto investors navigating an uncertain market, keeping an eye on Reserve Ratios and reporting frequency could prove as critical as analyzing price charts.