The cryptocurrency exchange Bitget has declared that it is debt-free and that its reserves have increased to a peak of $1.44 billion.
According to Bitget's release, the exchange's overall reserve ratio is currently 223%, which is more than double the industry-standard 100% (or 1-to-1 backing) requirement.
According to the exchange, its reserve ratios for various digital assets are as follows: 454% for Bitcoin (BTC), 135% for Tether (USDT), and 171% for Ether (ETH).
Zero debt
It's noteworthy that a spokesperson for Bitget told Cointelegraph in an interview that the exchange has no debts that are not included in the reserve ratio that is publicly available.
The exchange's spokesman stated, "Bitget has no ongoing debts or liabilities and is not registered as a creditor for any recently bankrupt companies.
The Bitget official clarified that income from transaction fees and returns from its own investments and acquisitions are the sources of the surplus huge reserves it has in cryptocurrency, which greatly surpass the customary 1-to-1 backing. The exchange remained mum regarding its intentions for its extra crypto holdings.
Consistent proofs of reserves
To increase trust in their platform, Bitget's managing director Gracy Chen stated in a press release that the company would keep releasing proof-of-reserve statements on a monthly basis.
According to Chen, Bitget also aims to raise standards across the board by working with other exchanges to promote radical openness as cryptocurrencies advance.
A new crypto lending programme that allows users to stake their own coins in exchange for loans in another was introduced by Bitget earlier this month.
At the time, Bitget's Gracy Chen stated, "Users now have the chance to stake less popular coins, enabling them to acquire loans in more liquid assets for investing purposes.
Bitget was named by blockchain research company Nansen in June as one of the cryptocurrency exchanges that had gained traction since the FTX crash, along with rivals Kraken and Bybit.
