Leading cryptocurrency exchange Binance has published its 39th Proof of Reserves (PoR) report, offering fresh transparency into its custodial holdings as of February 1, 2026. The report reveals notable shifts in three core assets — Bitcoin (BTC), Ethereum (ETH), and Tether (USDT) — compared with the previous snapshot taken on January 1, 2026.
Key Asset Balance Changes
- Bitcoin (BTC): User-held BTC balances increased modestly, rising by approximately 0.41%, or 2,614 BTC, to reach about 639,000 BTC.
- Ethereum (ETH): ETH holdings declined, with users’ balances falling by 3.74% — a drop of around 162,469 ETH to about 4.18 million ETH.
- Tether (USDT): USDT holdings were down 3.07%, decreasing by roughly 1.16 billion USDT to about 36.8 billion USDT.
The report reflects Binance’s ongoing effort to provide transparent, verifiable data on user assets held in custody, a practice intended to strengthen confidence in the exchange’s ability to match user liabilities with on-chain reserves.
Industry Context and Importance
Proof of Reserves has become an important transparency tool in the crypto industry following past exchange failures. By publishing regular snapshots of user balances and reserve data, centralized exchanges like Binance aim to demonstrate solvency and reassure users that their assets are backed 1:1. Binance’s disclosure mechanism incorporates cryptographic techniques, including Merkle trees, that allow users to verify their individual holdings in the aggregate dataset.
Industry observers note that continued publication of PoR reports by major exchanges plays a role in differentiating platforms based on transparency and risk management practices. Analysts also monitor trends in reserve compositions — especially declines in stablecoin balances like USDT — for signals about users’ behavior, liquidity preferences, and market sentiment.
Market Implications
The mixed shifts reflected in the 39th report — with Bitcoin balances ticking higher while major altcoin and stablecoin holdings contract — could mirror broader market dynamics. Larger BTC holdings might suggest increasing allocation to bitcoin or consolidation of BTC on exchange infrastructure, whereas declines in ETH and USDT could indicate outflows, rebalancing to other assets, or shifting trader strategies.
Cryptocurrency market conditions remain sensitive to both macroeconomic developments and internal flows within the crypto ecosystem, and detailed Proof of Reserves disclosures are likely to remain a focal point for investors, traders, and regulators watching exchange health and backing standards.
