Binance launches Proof-of-Reserves feature for Bitcoin holders

The cryptocurrency exchange Binance announced an update designed to improve transparency of users’ funds storage, ForkLog was told by the platform’s representatives.

The Proof-of-Reserves feature will allow Bitcoin holders to verify that the exchange stores their funds in full and that they are backed by reserves.

Users will also be able to check their assets and transactions via the Merkle Tree data structure.

To do this, on the Binance site a user should go to their wallet and select the ‘Audit’ option. This will generate a unique record identifier that confirms asset coverage and their balance at the time of the audit.

In the future, the ability to use the feature will be extended to holders of ETH, USDT, USDC, BUSD and BNB.

Full launch is expected within a few weeks.

Binance plans to enlist an independent third-party auditor to verify Merkle Tree data and implement the ZK-SNARK tool for additional confirmation of reserve holdings.

Earlier in November Binance disclosed information about its crypto reserves.

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