On March 21, the second-largest crypto exchange by trading volume, OKX published its fifth Monthly Proof of Reserves that revealed its $8.9 billion reserve held in various digital currencies in BTC, ETH, and USDT.
If we believe the report, OKX contains the reserve holding in BTC, ETH, and USDT for respectively 103%, 103%, and 102%.
Apart from the report, OKX has also enhanced the transparency for its Proof of Reserves by disclosing full liabilities, or the total balance of user deposits visible for the public. Anyone can download the full liability Merkle tree that allows users to check their own liabilities but obscured data from other users.
OKX splits and shuffles account liabilities in the tree using a technical method called ‘splitting leaf nodes’ to protect user privacy. One can also verify Reserves and liabilities on the OKX website using open-source 3rd party verification tools.
The March report shows its reserve holding has been increased by $300 million in comparison previous month. In Feb, OKX mentioned $8.6 billion in holdings in its monthly report.
OKX Managing Director of Global Institutional Lennix Lai stated, “OKX is continuously enhancing our approach to exceed market standards and achieve real-time, trustless verification of reserves, liabilities and solvency. This kind of dynamic, on-demand audit could be fundamental to a next generation financial system, and is very relevant given the heavy scrutiny the current banking system is experiencing.”
In the report, OKX also mentioned that it will soon upgrade its PoR with zero-knowledge (zk) proof technology. The integration of OKX will allow users to “ verify all client deposits are accounted for and guarantees solvency by comparing net equity of user assets to exchange reserves.”