This most recent proof of reserves covered the most widely held cryptocurrencies: BTC, ETH, USDC, USDT, DOT, ADA, and XRP. It also included open margin positions, forward balances, and on-chain staked amounts of these assets. In total, approximately 78% of all customer cryptoassets held on the platform were covered by this most recent certification.
We pioneered the proof of reserves process in 2014 and have committed to implementing it regularly since January 2022.
Why it matters
Proof of reserves is still a relatively new process; it has no universally accepted definition or requirements. At Kraken, proof of reserves includes certification from an independent third party to prove that we back your account holdings with fully reserved in-kind assets.
As with our previous proof of reserves, we use a Merkle tree to represent individual account balances identifiable by an encrypted and unique hash (a string of characters). We then successively hash these records until only one Merkle root The hash represents the sum total of covered customer balances. This means that account balances can be easily verified as included in the proof of reserves without having to expose the underlying unencrypted data set.
In this proof of reservations, customers can now download full path into Merkle tree, from their account to the root. They can review its construction, better understand how Kraken’s proof of reserves process works, and personally verify the value and validity of the root hash included in the report.
Kraken’s proof of reserves includes the following:
- The sum total of all customer liabilities (or balances)
- A way for customers to cryptographically verify that their account details and individual balances have been included in the total sum.
- Third-party attestation that verified that Kraken has full control over on-chain assets beyond these liabilities
We are committed The network businessa registered CPA firm specializing in accounting and attestation services for crypto businesses, to attest to the fact that we had full control over the wallets containing client balances.
How can I find out more?
If you have not already done so, we encourage you to log in to Kraken and check your balances yourself were included in this review. Please keep in mind that this proof of reserves only covers assets that were on the platform as of November 30, 2023. Assets held on the platform before or since this date are not included in this report.
For a detailed overview, please see The Network Firm’s full report accessible via the verification portal. You can also consult our What is proof of reserves? Beginner’s Guide blog post. If you have further questions, please contact Kraken Support.
These materials are intended for general information purposes only and do not constitute investment advice or a recommendation or solicitation to buy, sell, stake or hold any crypto-asset or to engage in any trading strategy. specific trading. Kraken does not and will not endeavor to increase or decrease the price of any particular crypto-asset it makes available. Some crypto products and markets are unregulated and you may not be protected by government compensation and/or regulatory protection programs. The unpredictable nature of crypto-asset markets can result in losses of funds. Tax may be payable on any returns and/or increases in the value of your cryptoassets and you should seek independent advice on your tax situation. Geographic restrictions may apply.