Crypto exchange OKX is launching a new proof-of-reserve system that allows customers to verify their digital assets.
Seychelles based company To tell OKX Proof of Reserves (PoR) provides a means for users to verify that their funds are backed 1:1 by real assets.
“At OKX, we own 1:1 all customer assets on our platform and pride ourselves on our long-standing reputation for best-in-class security. It provides a lot more transparency.”
OKX is one of the most prominent exchanges in the cryptocurrency industry, following the bankruptcy of rival FTX after one of the cryptocurrency industry’s most prominent exchanges failed to meet its financial obligations. We launch our first PoR to set a new standard for risk management and user protection.
“Our on-chain wallet holdings are now public, so we can be sure that our funds are backed by real assets.”
The company also said it has rolled out a self-audit feature that lets users know if their assets are safe. The feature initially supports KingCrypt Bitcoin (BTC), top altcoin Ethereum (ETH), and stablecoin Tether (USDT), but OKX will support more assets in the future. It says it will add support.
“Going forward, we will conduct regular Proof of Reserve audits to update collateral balances and the status of assets in our reserves.”
Despite facing greater scrutiny in the aftermath of the FTX crash, some crypto firms do not share the same view as OKX in providing proof of reserves.
For example, wealth management giant Grayscale has said it has no plans to release cryptographic proofs of its reserves, citing security reasons.
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