OKX, the world’s second-largest cryptocurrency exchange by trading volume, has published its fifth monthly Proof-of-Reserves (PoR) report. The report shows that OKX holds $8.9 billion in Bitcoin (BTC), Ethereum (ETH), and Tether (USDT), with reserve ratios of 103% for both BTC and ETH and 102% for USDT.
OKX has been working to increase transparency in its PoR system and now discloses the full extent of liabilities, including total customer deposits, and allows anyone to access and download the complete liability Merkle tree. This is an improvement from the previous system, which only displayed a user’s liabilities and concealed data from others.
OKX’s Managing Director of Global Institutional, Lennix Lai, stated:
“In times of uncertainty, transparency is paramount and users need to have access to crypto-native tools that prove an exchange’s reserves on the blockchain unequivocally.”
Lai noted that OKX is constantly improving its methods to surpass market norms and attain instantaneous, decentralized authentication of reserves, liabilities, and solvency. Lia believes that this type of dynamic, on-demand audit could serve as a cornerstone for a future financial system and is particularly relevant considering the intense scrutiny the current banking system is facing.
The report indicates that OKX plans to integrate zero-knowledge-proof technology to enhance its Proof-of-Reserve system. This cryptographic technique is tamper-proof and enables users to verify that all client deposits are correctly recorded. It also ensures solvency by comparing user assets’ net equity with exchange reserves.
Last month, OKX’s fourth PoR report showed clean assets worth $8.6 billion, a 15% increase from January’s report of $7.5 billion. The February report also revealed that OKX held 135,735 BTC in excess, exceeding user balances of 130,664 BTC. Also, OKX raised its reserve ratios for BTC and ETH to 104%.
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