Proof of Reserves: Verifying Cryptocurrency Asset Transparency

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In the rapidly evolving world of digital assets, trust and transparency are not just ideals—they are necessities. As one of the leading cryptocurrency exchanges, OKX continues to set industry benchmarks with its 32nd Proof of Reserves (PoR) report, confirming $28.4 billion in primary assets held securely across on-chain wallets and third-party custodians. This latest update reinforces our unwavering commitment to user security, solvency, and full asset backing.

With reserve ratios consistently exceeding 100% across major cryptocurrencies—including Bitcoin (BTC), Ethereum (ETH), and key stablecoins—OKX ensures every user deposit is fully covered. Our transparent, auditable system empowers users to independently verify asset holdings, fostering confidence in an ecosystem where accountability matters more than ever.

Why Proof of Reserves Matters

In the decentralized finance landscape, user trust hinges on verifiable proof that exchanges actually hold the assets they claim. Unlike traditional financial institutions, crypto platforms operate in a trust-minimized environment—where seeing is believing.

OKX has long prioritized security and liquidity, maintaining a strict 1:1 reserve ratio for customer deposits. This means for every dollar (or cryptocurrency) users deposit, an equivalent amount is held in reserve—ensuring full solvency and protection against insolvency risks.

Our public on-chain wallet ownership allows anyone to cross-check aggregate balances, confirming that customer funds are fully backed by real digital assets. By publishing monthly Proof of Reserves reports, we establish a gold standard in the crypto industry, promoting regulatory compliance, user confidence, and long-term ecosystem sustainability.

👉 Discover how blockchain transparency protects your crypto assets today.

What Is Proof of Reserves?

Proof of Reserves (PoR) is a cryptographic audit mechanism that verifies a custodian holds sufficient funds to cover all user account balances and deposit liabilities. It proves that a crypto exchange possesses specific assets on the blockchain at a given time—without revealing sensitive personal data like individual account balances.

This method delivers transparency at scale, enabling users to confirm the total deposited assets on an exchange while preserving privacy. PoR plays a critical role in building trust within the crypto economy, especially after high-profile exchange failures due to insufficient reserves.

At OKX, we provide reserve reports for 22 major cryptocurrencies, including:

These assets are selected based on their strong market acceptance, liquidity, and reliability—ensuring accurate and meaningful reserve disclosures.

How Our Proof of Reserves Works

OKX employs a robust, open-source verification framework powered by advanced cryptography. Here’s how we ensure full transparency:

1. Zero-Knowledge Proofs with zk-STARK

We use zk-STARK (Zero-Knowledge Scalable Transparent Argument of Knowledge), a cutting-edge cryptographic protocol that enables secure and private verification. This technology allows us to prove asset ownership and reserve sufficiency without exposing confidential data such as individual balances or exact wallet addresses.

zk-STARK relies on the FRI (Fast Reed-Solomon Interactive Oracle Proof) protocol to validate data integrity and authenticity. Most importantly, it upholds user privacy by concealing transaction amounts, values, and specific identifiers.

2. Merkle Tree Structure for Account Verification

We take a snapshot of all user account balances and organize them into a Merkle Tree—a hierarchical data structure where each leaf node represents a user's balance. The root of this tree summarizes all account data cryptographically.

Three core constraints are applied to ensure accuracy:

🔹 Constraint 1: Total Balance Integrity

The sum of all user account balances must equal the total assets held by OKX—ensuring no discrepancies between liabilities and reserves.

🔹 Constraint 2: Non-Negative Balances

No account can have a negative balance. This guarantees positive net equity for all users and confirms platform solvency.

🔹 Constraint 3: Inclusion Verification

Every user’s balance is included in the Merkle Tree, ensuring no accounts are omitted from the audit.

These rules are cryptographically proven using zk-STARKs, making fraud or manipulation virtually impossible.

👉 Learn how zero-knowledge proofs secure your digital wealth.

Verifying OKX Wallet Ownership and On-Chain Assets

To further enhance transparency, OKX publishes a public list of on-chain wallet addresses used to store user funds. Each address includes a signed message stating: "I own this OKX address," signed with the corresponding private key—providing undeniable proof of ownership.

You can verify these claims using third-party tools or OKX’s open-source validator. For example, with Bitcoin (BTC):

  1. Download the published wallet address list from our PoR portal.
  2. Copy the BTC address, digital signature, and signed message.
  3. Use a third-party signature verification tool—or OKX’s open-source validator—to confirm the signature matches the address.
  4. Cross-check the wallet balance using blockchain explorers against the reported block height snapshot.

This process ensures complete end-to-end verifiability—from ownership to actual fund availability.

How to Self-Verify Proof of Reserves

OKX empowers users to independently audit our reserve claims. Here’s how you can verify key components of our PoR report:

✅ Verifying Inclusion Constraint (September 2024 Onwards)

  1. Go to the PoR section on OKX and click View Details to access your report data.
  2. Click Copy Data and paste it into a new file named _inclusion_proof.json.
  3. Download OKX’s open-source zk-STARK Validator and save it in the same folder.
  4. Run the validator—it will automatically process your JSON file.

If successful:
"Inclusion constraint validation passed"

If failed:
"Inclusion constraint validation failed"

Access historical Merkle Trees:

✅ Verifying Total Balance & Non-Negative Constraints

  1. In the Liabilities Report tab, download the zk-STARK file.
  2. Extract it to reveal sum_proof_data.json.
  3. Place the zk-STARK Validator in the same root folder.
  4. Launch the validator to run the proof automatically.

Result if valid:
"Total sum and non-negative constraint validation passed"

Result if invalid:
"Total sum and non-negative constraint validation failed"

✅ Verifying Wallet Address Ownership & Balance

  1. Download public wallet address information from OKX’s PoR portal.
  2. Use the open-source validator tool to begin verification.
  3. Copy the BTC address, signature, and message separately.
  4. Paste into a third-party signature checker or OKX’s tool.
  5. Confirm ownership and compare balance via blockchain explorer using the provided block height.

Frequently Asked Questions (FAQ)

What is the purpose of Proof of Reserves?

Proof of Reserves ensures that a crypto exchange holds enough assets to fully back user deposits. It promotes transparency, prevents insolvency, and builds trust in decentralized ecosystems.

Can I verify OKX’s reserves myself?

Yes. Using our open-source zk-STARK validator and published Merkle Trees, anyone can independently verify inclusion, total balances, and wallet ownership.

Does Proof of Reserves mean my funds are safe?

While PoR confirms asset backing, it's one layer of security. Combined with cold storage, multi-sig wallets, and regular audits, it significantly enhances fund safety.

What does a reserve ratio over 100% mean?

A ratio above 100% indicates that OKX holds more assets than user liabilities—ensuring full coverage even during market volatility.

How often are PoR reports updated?

OKX publishes Proof of Reserves reports monthly, with real-time snapshots available for public verification.

Which cryptocurrencies are included in the report?

We cover 22 major coins, including BTC, ETH, BNB, XRP, SOL, ADA, DOT, and top stablecoins like USDT and USDC.

Final Thoughts: Trust Through Transparency

In an era where digital asset security is paramount, OKX leads with actionable transparency. Our $28.4 billion in verified reserves, powered by zk-STARKs and open-source tools, sets a new benchmark for accountability in crypto.

By enabling anyone—from casual users to auditors—to verify our reserves independently, we’re not just proving solvency—we’re redefining trust in finance.

👉 See how leading exchanges are securing the future of crypto—start verifying now.