Binance Sells USDC After Silvergate Bank Collapse: PoR Report

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• Binance released a proof-of-reserves report, reflecting healthy finances and more than enough crypto and cash to cover user funds.
• The report shows that Binance’s USDC balance decreased from $3.4 billion on March 1 to $23.9 million by May 1, possibly due to the Silvergate collapse.
• Coinbase CEO Brian Armstrong alluded to Binance selling USDC for another stablecoin in their Q2 earnings call meeting.

Binance Releases PoR Report

Cryptocurrency exchange Binance released its latest proof-of-reserves (PoRs) on Aug. 1, offering transparency into its crypto reserves. The ratio of Binance’s net balances to its customers’ net balances is more than 100% for all its assets.

Silvergate Collapse Affects USDC Reserves

The movement of its USD Coin (USDC) reserves at the time of Silvergte’s collapse caught many people’s attention and became a topic of discussion on X (formerly Twitter). On-chain data suggests that right after Silvergate collapsed on March 12, Binance started converting its USDC reserves into Bitcoin (BTC) and Ether (ETH), totaling around $3.5 billion, the same amount as the surplus of USDC it had prior to March 12th.

Binance Converted USDC Internally in September

Binance started converting customer’s USDC to Binance USD in September internally, but at the time, it did hold a significant amount of USDC in its reserves as well.

Calls For More Transparency

Calls for more transparency grew in light of FTX’s crypto exchange collapse and 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 FTX .

Coinbase CEO Quips About Stablecoin Sales

The revelation around Binance’s USDC reserves has become a hot topic, especially after Coinbase CEO Brian Armstrong quipped during the company’s Q2 earnings call meeting that Binance has sold USDC for another stablecoin .

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