Home CryptocurrencyAltcoin OKX declares $7.5 billion in liquid assets in a reserve confirmation report

OKX declares $7.5 billion in liquid assets in a reserve confirmation report

by SuperiorInvest

OKX Crypto Exchange Announces $7.5 Billion in Bitcoin Reserves (BTC), ether (ETH) and Tether (USDT) as part of its monthly Proof of Reserves (PoR) report. OKX claims to have “the largest net asset reserves among major exchanges,” according to data from blockchain analytics firm CryptoQuant.

OKX claims to maintain 1:1 reserves, which would mean that the company’s on-chain assets match 100% of customer balances. The report shows a current reserve ratio of 105% for BTC, 105% for ETH and 101% for USDT.

The term “pure” is used in Proof of Reserves to describe crypto assets that do not include exchange platform tokens and are made up purely of high market capitalization crypto assets such as BTC, ETH, and USDT.

CryptoQuant monitors PoR across the industry. Net reserve is defined by the company as:

“Net reserve is the total reserve of each exchange, excluding the exchange’s native token. Exchange liquidity can be a risk if the self-issued token holds a significant percentage of the total reserve amount. That’s why we used net reserve to transparently visualize the liquidity of each exchange.

Related: Proving reserves is becoming more efficient, but not all of its challenges are technical

The analyst firm concluded that OKX’s assets are 100% clean. The PoR report, which is available on the OKX website, includes data on historical reserve ratios and liabilities. According to the company, it has published more than 23,000 addresses as part of its Merkle tree PoR program “and will continue to use these addresses to allow the public to track asset flows.”

Many in the industry are calling for more detailed information on liquidity through the use of proof-of-reserves reports since the FTX collapse in November 2022. Since then, many crypto exchanges have published third-party reports, including Binance, KuCoin, Crypto.com, and Bitfinex.

Two accounting firms, Mazars and Armanino, removed crypto services from their portfolios in December, leaving exchanges without an audit at a crucial time. Armanino was the audit firm for FTX and faced pressure from non-crypto clients after being unable to uncover problems at the now bankrupt company.

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