Crypto.com, which was founded in 2016, has joined the train of cryptocurrency exchanges that have released their Proof of Reserves (PoR) in the aftermath of the collapse of the one-time fastest-growing crypto exchange, FTX.
A PoR is an independent audit conducted by a third party that seeks to confirm a digital asset custodian truly holds the assets it claims it has in reserves to secure customers' funds.
On Friday, the Singapore-based exchange released its Proof of Reserves which was audited by Mazars Group, a top international audit, tax and advisory firm. The auditor used advanced cryptographic procedures to confirm the availability and backing of its customer balances, Crypto.com explained.
Additionally, the exchange noted that its users can now verify that their crypto assets are fully backed 1:1 on its platform. The digital asset firm pointed out that Mazars Group compared its proven assets held in on-chain addresses with its customer balances.
As shared by Crypto.com, the asset-reserve rations for the major digital assets on its platform include BTC (102%), ETH (101%), USDC (102%), USDT (106%), USDT (106%) and XRP (101%). Others are Dogecoin (101%), Shiba Inu (102%), Link (101%) and Mana (102%).
Speaking on the development, Kris Marszalek, the CEO of Crypto.com, noted that “providing audited Proof of Reserves is an important step for the entire industry to increase transparency and begin the process of restoring trust.”
PoR and Other Crypto Exchanges
At the start of the week, another Singapore-based crypto exchange Bitget released its PoR which is based on the Merkle tree technique. The exchange launched the ‘Merkle Validator' tool for its users to audit their own accounts and verify the backing of their crypto deposits.
“The release of the Proof of Reserves and the Merkle tree data equips users with updated and informational insights on the financial status of Bitget and enhanced control on their assets stored on the platform, which is echoed in our commitment of maximum transparency and top-notch protection policies for users," Gracy Chen, the Managing Director of Bitget, explained.
Furthermore, in late November, the leading cryptocurrency exchange, Binance published its PoR for Bitcoin, promising to add the ones for Ether, USDT, USDC, BUSD and BNB 'soon'.
“So, in simple terms, when a user deposits one Bitcoin, Binance’s reserves increase by at least one Bitcoin to ensure client funds are fully backed. People will be able to check the site and see Binance’s Proof of Reserves, showing Binance’s reserve ratio alongside customer liabilities,” Binance explained.
