As shared by on-chain analyst Willy Woo on Twitter, the Secure Asset Fund for Users (SAFU) includes $367 million worth of BNB, which means the SAFU insurance fund is 44% backed by Binance's own Token
The remainder is made up of Binance’s dollar-pegged stablecoin BUSD ($300 million, takes up 32% of the SAFU insurance fund) and Bitcoin ($270 million, takes up 24% of the SAFU insurance fund).
Willy Woo found Binance’s reliance on BNB within the reserve to be concerning.
“While I commend Binance for having such a fund, there’s no sense putting incidence-correlated BNB in there,” he said. “How would we feel about FTX having an insurance fund filled with FTT?”
These balances are verifiable through public blockchain data, at Binance’s Bitcoin and BSC addresses respectively. The exchange soon plans to implement a proof of reserves system verifying its total exchange assets as well.
"The $837m in the SAFU fund protects users interests on Binance Exchange and also Binance Custody. Binance Exchange has $68b in its proof of reserves today. Binance Custody, last known estimate this week is $800m, and growing rapidly." Willy Woo added.