Bybit’s latest proof-of-reserves snapshot and Binance’s $3 billion tokenized-stock milestone have put exchange custody practices under renewed scrutiny, highlighting both the value and the limits of transparency reports. On November 3, Bybit published its 41st proof-of-reserves report, saying security firm Hacken independently checked figures tied to an October 27, 06:00 UTC snapshot covering $17.3 billion in customer assets across 50 cryptocurrencies. Bybit reported reserve ratios exceeding 100% for all covered assets, including 112% for USDT, 405% for USDC, 102% for Bitcoin and 101% for Ether.
The exchange cautioned that the snapshot should not be read as an all-purpose guarantee against every liability. Bybit emphasized that a token-by-token reserve ratio differs from consolidated corporate solvency, and noted that balances, borrowing, market prices and off-exchange exposures can shift after the audit point. Hacken’s verification supports Merkle-tree inclusion and possession of identified on-chain assets, but it does not by itself establish that there are no undisclosed debts, encumbrances, affiliated-party claims or operational weaknesses.
Binance, meanwhile, said on November 10 that customers held more than $3 billion in traditional financial assets across Direct Stocks and bStocks. The bStocks product separately reported $1.5 billion in assets under management, calling itself the world’s largest tokenized equity offering by that measure. Binance noted that bStocks are issued by BTech Holdings Limited, a special-purpose vehicle in Abu Dhabi Global Market, and are structured as equity-linked certificates rather than direct share ownership. Eligible instruments can be transferred as BEP-20 tokens on BNB Smart Chain, but investors generally receive contractual economic exposure rather than shareholder voting rights.
The stock-milestone disclosure follows a late-October security incident in which Binance reported approximately $6.34 billion in affected assets and said about $2.85 billion was frozen or intercepted during its response. Binance said customer losses would be covered by company resources and its SAFU mechanism. Although there is no established evidence that bStocks collateral was affected, the incident underscores the distinction between exchange operational security and legal protection of underlying assets. Analysts caution that tokenized equity investors should verify issuer rights, collateral coverage, trading spreads and corporate-action treatment before relying on low minimums or 24/7 trading, especially when underlying stock exchanges are closed.
