Crypto Exchange OKX Launches New Proof-of-Reserves System Allowing Users To Verify Their Assets
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Crypto exchange OKX is launching a new proof-of-reserve system that enables customers to verify their digital assets.
The Seychelles-based firm says the OKX Proof of Reserves (PoR) will provide a means for users to verify that their funds are backed 1:1 by real assets.
“At OKX, we hold a 1:1 reserve of all customer assets on our platform and pride ourselves on our long-standing reputation for best-in-class security. Now, we’re empowering you with greater transparency than ever before through PoR, a common cryptographic audit.”
OKX is launching its first PoR in a bid to set a new standard of transparency, risk management and user protection following the collapse of rival FTX after an unexpected surge in withdrawals left one of the crypto industry’s most prominent exchanges unable to meet its financial obligations.
“Our on-chain wallet holdings are now public, so you can verify your funds are backed by real assets.”
The company says it also rolled out a self-audit feature that will let users know if their assets are safe. The feature initially supports king crypto Bitcoin (BTC), top altcoin Ethereum (ETH) and stablecoin Tether (USDT), but OKX says it will add support for more assets in the future.
“Moving forward, we’ll conduct regular Proof of Reserve audits to update our collateral balance and the status of your assets within our reserves.”
Despite facing more stringent scrutiny in the aftermath of the FTX crash, some crypto firms do not share the same views as OKX in terms of providing proof of reserve.
For example, asset management titan Grayscale says it does not plan to release cryptographic proof of its reserves, citing security reasons.
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Featured Image: Shutterstock/POP DESIGNER
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