OKX Releases Second Proof-of-Reserves Report, Strengthening Customer Trust

• OKX, the second-largest cryptocurrency exchange by trading volume, released a second proof-of-reserves (PoR) report.
• The report 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 PoR report allows users to verify that the exchange has sufficient assets to handle customer withdrawals and provides more transparency on the exchange’s health and the safety of their assets.

OKX, the second-largest cryptocurrency exchange by trading volume, has published a second proof-of-reserves (PoR) report. This report allows users to verify that the exchange has sufficient assets to handle customer withdrawals and provides more transparency on the exchange’s health and the safety of their assets.

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). That’s a bitcoin reserve ratio of 101%, a slight decline from 102% disclosed in the first report released on Nov. 22. The reserve ratio for leading stablecoin tether (USDT) held steady at 101%, while ether’s (ETH) reserve ratio ticked higher to 103% from 102%. The exchange addresses tracked by analytics firm Nansen show 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. This method has 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. This report helps customers to view and download the old and new reserve ratios and assess the exchange’s health and the safety of their assets.

Overall, the second PoR report by OKX is a sign of the exchange’s commitment to providing more transparency to its customers and ensuring that it is not taking any risks with their funds. By releasing these reports on a monthly basis, OKX is strengthening customer trust and providing assurance that their funds are safe with the exchange.