Bitget Crypto Exchange Announces Debt-Free Status and $1.44 Billion Reserves in July Report
Bitget crypto exchange has announced that its reserves have reached a high of $1.44 billion, and that it is officially debt-free.
As per Bitget’s announcement, the exchange’s overall reserve ratio now stands at 223%, more than twice the standard 100% (or 1-to-1) backing that is expected of all exchanges in the industry.
Broken down into different digital assets, the exchange said it has a reserve ratio of 454% for Bitcoin (BTC), 135% for Tether (USDT) and 171% for Ether (ETH).
A new industry benchmark has been set by Bitget!
— Bitget (@bitgetglobal) July 13, 2023
223% Total Reserve Ratio
Over $1.44 billion in 31 popular digital assets.
☑️ Bitget PoR – https://t.co/0LlYi92WB2
Full details – https://t.co/50ApR6CjpO pic.twitter.com/tSPkk8TYX1
No debts
Notably, a representative for Bitget told Cointelegraph in an interview that the exchange has no debts not accounted for in the published reserve ratio.
“Bitget has no outstanding debts or liabilities and is not listed as a creditor for any recently bankrupt companies,” the exchange’s representative said.
The Bitget representative explained that the excess large reserves it holds in crypto, which far exceeds the normal 1-to-1 backing, comes from profits from transaction fees and returns from its own investments and acquisitions.
The exchange did not reveal any plans about what it plans to do with its excess crypto reserves.
Regular proof-of-reserve statements
In a media statement, Bitget’s managing director Gracy Chen said that the company will continue to release monthly proof-of-reserve statements to build trust in their platform.
Bitget also endeavors to set higher standards industry-wide — collaborating across exchanges to advocate for radical transparency through crypto’s evolution, Chen added.
Earlier this month, Bitget launched a new crypto lending program that will let users stake their own coins in exchange for loans in another.
“Users now have the opportunity to stake less-demanded coins, enabling them to obtain loans in more liquid assets for investment purposes,” Bitget’s Gracy Chen said at the time.
In June, Bitget, along with rivals Kraken and Bybit, was mentioned by blockchain research firm Nansen as one of the crypto exchanges that have gained ground in the aftermath of the FTX collapse.
