Today, the OKX exchange released its third monthly Proof of Reserves (PoR). According to the data, the exchange maintains a total of $7.5 billion in BTC, ETH, and USDT. The exchange claims that its clean asset reserves are the largest of any major exchange. OKX has promised to maintain its monthly publication of PoR as part of its dedication to transparency.
Understanding Proof of Reserves and how OKX is implementing it
The Proof of Reserves report verifies that OKX, the custodian, actually possesses the crypto assets it purports to hold on behalf of its customers. The exchange has made its January PoR available on its website, along with all previous PoR reports, and it includes reserve ratios for both new and past data. OKX offers trustless solutions for verifying one’s own reserves and liabilities.
OKX uses two approaches in proving its PoR publications via the Merkle tree system. First, the OKX balance tree allows users to verify that their assets are included in the overall OKX balance. They can do this easily by confirming the balances against their wallet addresses. Second, OKX Proof-of-Reserves is calculated by comparing the overall OKX amount to the OKX on-chain wallet balance that is publicly available.
OKX has announced that it will continue to make public the over 23,000 addresses it has already published for the Merkle Tree PoR. The exchange ‘s assets were judged to be “100% clean” by CryptoQuant, a renowned blockchain analytics firm. If an independent audit verifies that a portfolio does not contain any platform tokens issued by cryptocurrency exchanges and instead consists only of large market cap “conventional” cryptocurrencies, the portfolio is said to be “clean” in PoR.
In the January publication, the exchange has added a more in-depth asset balance dashboard, so holders can see exactly how their BTC, ETH, and USDT holdings are accounted for in their overall asset value. OKX claims its reserve ratios are BTC 105%, ETH 105%, and USDT 101%, sticking to its 1:1 reserve policy from the start.