OKX declares $7.5B in liquid assets in proof-of-reserves report

Crypto speech OKX disclosed $7.5 cardinal successful reserves of Bitcoin (BTC), Ether (ETH) and Tether (USDT) arsenic portion of its monthly proof-of-reserves (PoR) report. Based connected information from blockchain analytics steadfast CryptoQuant, OKX claims to person the “largest cleanable plus reserves among large exchanges.”

OKX claims to support 1:1 reserves, which would mean means the company’s on-chain assets 100% lucifer the customer‘s balances. The study shows existent reserve ratios of 105% for BTC, 105% for ETH and 101% for USDT.

The word “clean” is utilized successful proofs of reserves to picture crypto assets that bash not see an exchange's level tokens and are purely made up of high-market-capitalization crypto assets, specified arsenic BTC, ETH and USDT.

CryptoQuant monitors PoRs crossed the industry. A cleanable reserve is defined by the steadfast as:

“A cleanable reserve is the full reserve of each exchange, excluding speech autochthonal token. There tin beryllium a hazard successful the exchange’s liquidity if a self-issued token holds a important percent of the full reserve amount. Hence, we person applied the cleanable reserve to visualize the liquidity of each speech transparently.”

Related: Proof of reserves is becoming much effective, but not each its challenges are technical

The analytics steadfast concluded OKX’s assets to beryllium 100% clean. The PoR report, which is disposable connected OKX’s website, includes humanities reserve ratios information and liabilities. According to the company, it has published much than 23,000 addresses arsenic portion of its Merkle histrion PoR programme “and volition proceed to usage these addresses to let the nationalist to presumption plus flows.”

Many successful the manufacture are calling for much detailed disclosures of liquidity done the usage of proof-of-reserves reports since FTX’s illness successful November 2022. Since then, galore crypto exchanges person released third-party reports, including Binance, KuCoin, Crypto.com and Bitfinex.

Two accounting firms, Mazars and Armanino, dropped crypto services from its portfolios successful December, leaving exchanges without audit sum astatine a important time. Armanino was the audit institution for FTX and has faced unit from non-crypto clients aft being incapable to spot problems successful the now-bankrupt company.