The fourth monthly Proof of Reserves (PoR) report from OKX, one of the largest cryptocurrency exchanges in the world by trading volume, shows $8.6 billion held in clean assets, including BTC, ETH, and USDT.
According to the report, the Seychelles-based crypto business is overcollateralized, with a reserve ratio of 104% for bitcoin (BTC), 104% for ether (ETH), and 102% for USDT.
🚨 Hot off the press 🚨#OKX is proud to publish our February #ProofOfReserves report.
1. OKX continues to have the largest 100% clean asset reserves in the industry.
2. Over a quarter million unique users have verified PoR already.
Details: https://t.co/3Jp3Ht52rC pic.twitter.com/H45KwQLitV
— OKX (@okx) February 20, 2023
About 90,000 unique users have confirmed their liabilities are accounted for in the PoR, according to the exchange, which claims that over 175,000 unique users have visited its “Proof of Reserves” page since it began the program late last year.
Moreover, it claims that independent research once again demonstrates that among major exchanges, OKX has the largest 100% clean asset reserves.
In response to the reports, OKX Managing Director of Financial Markets Lennix Lai expresses his delight in the company’s continuous disclosure of its proof of reserves on a monthly basis, which he argues is in accordance with OKX’s “unwavering commitment” to transparency. He continued,
“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.”
OKX Holds 100% Clean Reserves
The exchange also announced in January that it had $7.5 billion in clean assets. The cleanliness of assets is a CryptoQuant metric that gauges how dependent an exchange is on its native cryptocurrency.
Assets are deemed “clean” in PoR when an independent investigation reveals they only consist of “traditional” high market cap crypto assets like BTC, ETH, and USDT and exclude an exchange’s platform native token.
OKX has revealed almost 23,000 addresses for its Merkle Tree POR program, which allows the public to view their asset flows. Meanwhile, users can access the open-source OKX PoR protocol on GitHub.
Proof of Reserves (PoR) is a move undertaken mostly by centralized exchanges to publish their asset reserves to customers, demonstrating their financial stability and the safety of their users’ assets on their trading platforms. This came about as a result of users’ growing loss of confidence in centralized participants following the dramatic failure of the FTX cryptocurrency exchange in November 2022.
While many leading crypto exchanges, like Binance, Coinbase, Kraken, and KuCoin, continue to disclose their reserve holdings, some are yet to do so.