• OKX, the second-largest cryptocurrency exchange by trading volume, released a second proof-of-reserves (PoR) report, showing that its wallets held 113,754 bitcoin (US$1.87 billion) against a user balance of 112,192 bitcoin (BTC).
• The report also showed that the reserve ratio for leading stablecoin tether (USDT) held steady at 101%, while the ether’s (ETH) reserve ratio ticked higher to 103%.
• OKX said it would continue to release proof of funds on the 22nd day of each month in order to foster user trust and allow users to audit its 23,000 addresses.
OKX, the second-largest cryptocurrency exchange by trading volume, has released a second proof-of-reserves (PoR) report, allowing users to verify that the platform has sufficient assets to handle customer withdrawals. The report, released Thursday, shows that as of Tuesday, 12:00 UTC, OKX’s wallets held 113,754 bitcoin (US$1.87 billion) against a user balance of 112,192 bitcoin (BTC). This gives a bitcoin reserve ratio of 101%, a slight decline from 102% disclosed in the first report released on Nov. 22.
The report also showed that the reserve ratio for leading stablecoin tether (USDT) held steady at 101%, while the ether’s (ETH) reserve ratio ticked higher to 103%. The exchange addresses tracked by analytics firm Nansen show that BTC, ETH and USDT make up over 90% of holdings.
Proof of reserves is an audit method adopted by cryptocurrency exchanges in the aftermath of FTX’s collapse to prove that the custodian, in this case OKX, isn’t lending out customer funds, as FTX did, and has the assets it claims to hold on behalf of its users. These reports have, nevertheless, been criticized for not providing information about liabilities and internal quality controls, a focal point in the crypto community. For instance, Binance’s recent proof of reserves report from French audit firm Mazars was criticized for lack of details about the way exchange liquidates assets to cover margin loans.
OKX said in a press release shared with CoinDesk that it would release proof of funds on the 22nd day of each month to win customer trust and allow users to audit its 23,000 addresses, which the exchange plans to continue using in the future. The release also stated that users can now view and download the old and new reserve ratios to assess the exchange’s health and the safety of their assets.
In conclusion, OKX has taken a significant step in the right direction by releasing its second PoR report. This allows users to verify that the platform has sufficient assets to handle customer withdrawals, as well as to audit its 23,000 addresses. By releasing proof of funds on the 22nd day of each month, OKX is not only building trust with its customers, but also providing a level of transparency that makes it a safe and secure platform for cryptocurrency trading.
