OKX says it holds $8.6 billion in Bitcoin, Ethereum and dollars as proof-of-reserves
OKX, the world’s second-largest crypto exchange by trading volume, has revealed it holds $8,6 billion in Bitcoin, Ethereum and US dollars.
The Web3 platform published its fourth monthly proof-of-reserves (PoR) to allow users to view the reserves as well as using open-source tools to check their liabilities.
OKX says more than 175,000 unique users visit the PoR page and in excess of 90,000 unique users verify their liabilities accounted for in the PoR. Third party data shows that OKX holds the largest 100% clean asset reserves among major exchanges.
“We are proud to continue the monthly publishing of our proof-of-reserves in line with our unwavering commitment to transparency and trust here at OKX,” said Lennix Lai, Managing Director of Financial Markets.
“Our data shows that hundreds of thousands of our users have taken an active interest in viewing our historical reserves and using open-source tools to verify their liabilities are included. Proof-of-reserves is far from a niche topic – it is of vital importance to building user trust and we are dedicated to ensuring OKX shows continued leadership in this area.”
What does ‘proof-of-reserves’ mean?
Proof-of-reserves is a report of crypto assets that ensures the custodian (in this case OKX) holds the assets it claims to hold on behalf of its users. OKX uses the Merkle tree (hash tree) to prove this claim in two ways. First, users can find their balance in the tree and prove their assets are held in the total OKX balance. Second, the total OKX balance is compared to the publicized OKX on-chain wallet balance to determine proof-of-reserves.
What are ‘clean reserves’?
Assets are considered ‘clean’ in PoR when a third party analysis determines they do not include an exchange’s platform token, and are solely made up of high market cap ‘traditional’ crypto assets such as BTC, ETH and USDT. Blockchain analytics firm CryptoQuant monitors PoR across the industry, and found OKX’s assets to be ‘100% clean‘.