Any Bitcoin exchanges uses "segregated" accounts?

[bitcool]

This question just crossed my mind:

The exchanges make money from trading commission, not by lending out customer fund, right? they are not fractional reserve banks, correct?

Then why can't them keep each customer's fund with the same address?  A customer's account balance will always match balance of that address, giving them confidence knowing the fund is there -- Mybitcoin and MFGlobal fiasco should make everyone nervous.

Does any exchange actually do this??

[1715344457]

1715344457

[John (John K.)]

This question just crossed my mind:

The exchanges make money from trading commission, not by lending out customer fund, right? they are not fractional reserve banks, correct?

Then why can't them keep each customer's fund with the same address?  A customer's account balance will always match balance of that address, giving them confidence knowing the fund is there -- Mybitcoin and MFGlobal fiasco should make everyone nervous.

Does any exchange actually do this??

Most exchanges take a huge chunk of their btc offline in paper wallets. Hence it wouldn't be pretty if they have to generate like one address for each person and take it offline at once. Plus using a new address for each transaction enables the exchange to determine exactly how many bitcoins are deposited per transaction.

[ForceField]

Keeping all BTC in one address would also remove the added anonymity of a diversified wallet.

[bitcool]

Most exchanges take a huge chunk of their btc offline in paper wallets. Hence it wouldn't be pretty if they have to generate like one address for each person and take it offline at once. Plus using a new address for each transaction enables the exchange to determine exactly how many bitcoins are deposited per transaction.

Not sure about the paper wallet thing, but I do believe some exchange do assign a receiving address per account, not per transaction. The fund does got transferred elsewhere later.
Receiving fund doesn't require wallet file to be online, sending fund does, but as long as the withdrawal process is automated, it means the money has to come from some online wallet. If you can secure one address, you probably can secure many.