ByBit has joined the ranks of major crypto exchanges such as Binance to provide its proof of reserves publicly. To join the parade of exchanges in the industry pushing for transparency post the FTX catastrophe Bybit has released a Merkle Tree-based proof-of-reserve system.
The new transparency initiative allows Bybits users to verify holdings directly, along with their personal assets deposited into the exchange. The new feature is available to all users with funds in both trading and funding accounts, which also includes crypto holdings in Bybit Earn products.
Additionally, the feature also enables verification of Bybit’s wallet ownership, that assets are held with a 1:1 ratio.
This is Bybits second move towards transparency, as almost a month ago, it publicly released the addresses of its largest crypto wallet amidst the upheaval caused by FTX’s collapse.
Ben Zhou, the co-founder and CEO of Bybit commented on the usage of Merkle Trees in liquidity verification. He quoted, “The cryptographic solution brings forth a crypto-native, trustless model of providing verifiable evidence of our on-chain holdings and liabilities….”
The exchange is also enhancing withdrawals and upping its risk management controls. It also committed to publishing all of the content of its Bitcoin and Ethereum wallets.
Also Read: India’s CoinDCX Launches its Proof-of-Reserves Report
