Top cryptocurrency exchange Binance, in a recent announcement, unveiled the Merkle tree Proof of Reserves (PoR) system.

Binance has released its proof-of-reserves system, starting with bitcoin, in order to show that the exchange is healthy and solvent.

Cryptocurrency exchange CoinDCX, India’s first crypto unicorn, published its proof of reserves on Thursday.

Cryptocurrency investment product provider Grayscale Investments has refused to provide on-chain proof of reserves or wallet addresses to show the underlying assets of its digital currency products citing “security concerns.”

The bank notes that many exchanges have already reported, or are planning to report, their assets through proof of reserves using Merkle Trees. These are efficient data structures called “hash trees” that can be securely verified. They behave as a map of customers' funds and work even when reserves become complicated.

The crypto community noticed that Binance moved $2.7 billion out of its proof-of-reserves wallet. Binance responded, saying that it was a move to a TRX cold wallet. Crypto community members are also doubting the reserves, saying it is inadequate for what is in the BNB ecosystem.