XRP proof of reserves on Binance has undergone a significant shift, according to the exchange’s latest transparency report. The update reveals notable changes in XRP, as well as in Bitcoin (BTC) and Ethereum (ETH), shedding light on user holdings and Binance’s asset management practices.

Binance Increases XRP Coverage Ratio

In its May proof-of-reserves snapshot, Binance reported a major uptick in its XRP user asset coverage. The platform now holds approximately 104.76% of user XRP balances, meaning the exchange has more XRP in reserve than what its users collectively own. This figure represents an improvement from previous months, where the ratio was closer to parity.

The over-collateralization reflects Binance’s evolving risk management strategies and its aim to reassure users of a fully backed system, even in volatile market conditions. It also signals confidence in XRP’s stability and long-term role as a utility token within the digital asset space.

Changes in BTC and ETH Coverage

While XRP saw a positive adjustment, the proof-of-reserves data also indicated movements in Bitcoin and Ethereum balances. Binance disclosed that its BTC coverage ratio now stands at 105.34%, while ETH coverage is at 103.58%. Both figures continue to exceed 100%, meaning Binance holds more assets than what is owed to users, but the slight shifts suggest ongoing balancing of reserves in response to market flows.

Proof-of-reserve reports have become increasingly important for centralized exchanges following a string of high-profile collapses in the crypto space. These disclosures offer a degree of transparency and assurance to investors, many of whom have become more cautious after events such as the FTX implosion.

What Proof of Reserves Really Means

Proof of reserves is a method used by crypto exchanges to publicly demonstrate that they have adequate digital assets to cover all customer holdings. Typically verified through third-party audits or Merkle tree calculations, this mechanism plays a critical role in boosting user confidence and promoting financial integrity within the crypto industry.

Since late 2022, Binance has published monthly reserve summaries. These reports outline the percentage of each major asset it holds compared to customer balances. When the number is above 100%, it means users’ deposits are fully backed, or even over-backed, by the platform’s reserves.

Ripple’s XRP Maintains Strategic Role

Among the major crypto holdings, XRP holds a unique position due to its association with Ripple and use case in global remittance and payment services. With regulatory pressures still looming over Ripple’s legal behind-the-scenes battles, the sustained trust in XRP reserves suggests retained investor interest and exchange confidence in the asset’s utility.

This trend may also correlate with Ripple’s expansion into cross-border payment systems, especially in emerging economies. As centralized exchanges like Binance adjust their holdings to match user expectations and regulatory oversight, XRP remains a cornerstone for liquidity and transaction efficiency.

A blockchain visualization representing secure tracking of crypto reserves and transactions.

Looking Ahead for XRP and Binance

Binance’s proactive updates on proof of reserves signal a push toward greater transparency and stability in the crypto ecosystem. The rise in XRP coverage suggests robust demand and suggests the exchange’s ongoing commitment to backing up digital assets in full.

As regulatory scrutiny continues worldwide, particularly in the U.S., maintaining healthy reserves may become a standard requirement for centralized crypto platforms. For investors, periodic proof-of-reserve disclosures can serve as a critical trust metric—helping them evaluate the safety of asset custody on exchanges like Binance.

Related: XRP Price: $12M Max Pain for Bears

Ultimately, XRP’s inclusion in stronger reserve holdings positions it as more than just a speculative token—it’s increasingly being regarded as an underlying element in global financial settlement infrastructure.