Changpeng Zhao (CZ), the founder and CEO of Binance, revealed on Monday that Ethereum co-founder Vitalik Buterin is on the cusp of developing a proof-of-reserves protocol, in which Binance would serve as its first test case.
CZ said this in an AMA (Ask Me Anything) held on Twitter on Monday. He stated that he recently spoke with Buterin who is currently planning on developing “some type of new proof-of-reserve protocol.”
Zhao also assured customers that Binance did not have loans or debt, stating that the exchange rely solely on third-party market makers for liquidity.
CZ Binance noted:
“We don’t owe anybody any money… We do have market makers. We rely very heavily on third-party market makers that provide liquidity… There is one market maker which I’m an investor and shareholder of, and I make sure that that liquidity provider does not make profits… So [it] just provides liquidity in the market.”
The CEO further stated that the exchange has been contacted by relatively five funds for the industry recovery fund that the exchange is working on to help projects with viable business models.
During the B20 Summit in Indonesia on Monday, Zhao also revealed that Binance plans to set up a global crypto association to set a very strong standard for the fast-growing industry.
It should be noted that all these moves are coming amid the collapse of the crypto exchange FTX, which recently filed for Chapter 11 bankruptcy in the United States.