Binance Semi-Automates B-Token Reserves Management After Errors
- Process aims to ensure reserves and client funds are not mixed
- New system will require collateral to be moved before minting
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Binance Holdings Ltd. is shifting to a “semi-automated” process for handling the reserves that back tokens it issues, following years of mismanagement in which reserves were mixed with other customer funds and at times appeared to be partially missing.
The world’s largest crypto exchange acknowledged last month that it had mistakenly kept collateral for more than 40 of its 94 Binance-peg tokens in a single $16 billion wallet that also held exchange-customer funds, following inquiries from Bloomberg News. Reserves for one major stablecoin were also not properly documented between 2020 and 2021, at times leaving gaps of up to $1 billion in externally visible funds.