Crypto Exchanges Kraken, Coinbase And Gate.Io published Proof of Reserves & Proof of Liabilities
Following FTX’s implosion, several crypto exchanges promised they will publish proof-of-reserve holdings in the next month.
Prominent crypto exchanges Kraken, Coinbase and Gate.io became the first exchanges to publish proof-of-reserves, including liabilities, as part of their audits, Cryptoslate reports.
“All crypto exchanges should do merkle-tree proof-of-reserves,” tweeted Binance’s CEO Changpeng days before the collapse of the rival FTX. “Banks run on fractional reserves. Crypto exchanges should not. Binance will start to do proof-of-reserves soon. Full transparency,” he added.
Heeding Zhao’s appeal, several other major crypto exchanges has already announced that they will use Merkle-tree-based proof of reserves system to establishing foundational trust in the industry.
Despite Binance initiating the movement, it has not included its liabilities in its proof-of-reserves like Bitfinex, MexcGlobal and ByBit (they will publish proof-of-reserves soon), while Crypto.com and Huobi have already published their proof-of-reserves and also announced that they are composing their liabilities report and will post that soon as well. OKX and Mexc, on the other hand, are currently working on publishing a full proof-of-reserves.
Proof-of-reserves (PoR) are third-parties independent audits that aim to provide transparency and evidence that crypto balances are backed by real assets and held safely in custody. Auditors then aggregate balances into a Merkle tree, which entails all client balances.