Proof of Reserves: Cryptocurrency Asset Verification and Trust

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In the fast-evolving world of cryptocurrency, trust and transparency are not just ideals—they're necessities. As digital asset platforms grow in scale and complexity, users demand verifiable proof that their funds are safe. This is where Proof of Reserves (PoR) becomes a cornerstone of responsible exchange operations.

OKX continues to lead the industry with its 32nd Proof of Reserves report, confirming $28.4 billion in primary assets held across its platform as of June 2025. This milestone underscores OKX’s ongoing commitment to security, solvency, and user empowerment through cryptographic verification.

👉 Discover how leading platforms ensure asset transparency and protect user funds

Why Proof of Reserves Matters in Crypto

For any cryptocurrency exchange, safeguarding user assets is paramount. Unlike traditional financial institutions, crypto platforms operate in a decentralized environment where regulatory oversight can be limited. That’s why Proof of Reserves has emerged as a critical standard for accountability.

At OKX, we maintain a 1:1 reserve ratio, meaning every user deposit is fully backed by equivalent on-chain digital assets. This ensures that even under extreme market conditions, customer withdrawals can always be honored.

Our on-chain wallet holdings are publicly accessible, allowing anyone to independently verify that deposits are fully covered—without exposing sensitive personal data. By publishing monthly PoR reports and opening our verification tools to the public, we set a benchmark for transparency in the crypto industry.

This level of openness isn’t just about compliance—it’s about building long-term trust with users, regulators, and the broader blockchain ecosystem.

What Is Proof of Reserves?

Proof of Reserves (PoR) is a cryptographic method used by custodians and exchanges to prove they hold sufficient assets to cover all customer liabilities. It verifies that an exchange possesses the digital funds it claims to hold, at a specific point in time.

PoR does this without revealing individual account balances, preserving user privacy while ensuring aggregate transparency. The process confirms:

OKX provides PoR reports for 22 major cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and leading stablecoins like USDT and USDC—assets chosen for their strong liquidity and market acceptance.

How OKX’s Proof of Reserves Works

Our PoR system combines cutting-edge cryptography with open-source transparency. Here's how it works in three key steps:

1. Zero-Knowledge Proofs Using zk-STARK

We use zk-STARK (Zero-Knowledge Scalable Transparent Argument of Knowledge), a privacy-preserving cryptographic protocol, to verify all user account balances. This allows us to prove the accuracy of our total liabilities without disclosing individual data.

2. Wallet Ownership Verification

We publish a list of our on-chain wallet addresses, each containing a signed message: "I am an OKX address." This signature proves ownership and enables independent verification by anyone.

3. Reserve Ratio Calculation

Finally, we compare the total value of customer account assets (liabilities) against our verified on-chain wallet holdings (assets). If assets meet or exceed liabilities, the reserve ratio is confirmed at or above 100%.

👉 See how advanced cryptography secures your crypto holdings today

Understanding zk-STARK: The Technology Behind Trust

zk-STARK is a powerful cryptographic tool that enables secure, private, and scalable verification. Unlike older systems, it doesn’t require a trusted setup and relies on transparent mathematical principles.

Key benefits:

At OKX, zk-STARK powers our liability proofs by validating three core constraints:

Rule 1: Total Balance Constraint

The sum of all user balances must equal the total liability claimed by OKX.

Rule 2: Non-Negative Constraint

No user account can have a negative balance—ensuring solvency and accurate accounting.

Rule 3: Inclusion Constraint

Every user’s balance must be included in the Merkle tree structure used for verification.

These rules ensure the integrity of our financial claims and protect against manipulation.

How to Self-Verify Proof of Reserves

Empowering users is central to our mission. You don’t have to take our word for it—you can verify OKX’s reserves yourself using our open-source tools.

Verify the Inclusion Constraint (September 2024 Onwards)

Ensure your account balance was included in the audit:

  1. Go to your account’s Proof of Reserves section and click Details.
  2. Click Copy Data and save the string as _inclusion_proof.json in a new folder.
  3. Download the OKX zk-STARK Validator tool and place it in the same folder.
  4. Run the validator—it will automatically process your file.

✅ Success message: "Inclusion constraint validation passed"
❌ Failure message: "Inclusion constraint validation failed"

Access historical Merkle trees:

Verify Total Balance & Non-Negative Constraints

Check if OKX’s reported totals are accurate:

  1. From the Liability Report tab, download the zk-STARK file.
  2. Unzip it to reveal sum_proof_data.json.
  3. Place the zk-STARK Validator in the same folder.
  4. Launch the validator to run the check.

✅ Success message: "Total sum and non-negative constraint validation passed"
❌ Failure message: "Total sum and non-negative constraint validation failed"

Verify OKX Wallet Address Ownership and Balance

Confirm that OKX controls its published wallets:

  1. Download the public wallet address list from OKX.
  2. Use a third-party or OKX-provided signature verification tool.
  3. Copy the BTC address, signature, and message ("I am an OKX address").
  4. Paste into the tool to validate ownership.
  5. Cross-check the wallet balance using blockchain explorers at the reported block height.

This end-to-end verification gives you full confidence in both ownership and solvency.

Frequently Asked Questions (FAQ)

What is the purpose of Proof of Reserves?

Proof of Reserves ensures that a crypto exchange holds enough assets to cover all customer deposits. It promotes transparency, prevents insolvency, and builds trust in digital asset platforms.

How often does OKX publish Proof of Reserves?

OKX publishes Proof of Reserves reports monthly, maintaining consistent accountability and up-to-date verification for users and regulators.

Can I verify my own account balance in the PoR?

Yes. Using the inclusion proof tool and your personal data file, you can confirm that your balance was included in the Merkle tree used for auditing.

Does Proof of Reserves guarantee my funds are safe?

While PoR doesn’t eliminate all risks (e.g., hacking), it verifies that user deposits are fully backed on-chain. Combined with strong security practices, it significantly enhances fund safety.

What role does zk-STARK play in PoR?

zk-STARK enables private, scalable, and trustless verification of large datasets. At OKX, it proves the accuracy of user balances without revealing sensitive information.

Are stablecoins included in Proof of Reserves?

Yes. Stablecoins like USDT, USDC, and others are part of our reserve calculations and undergo the same rigorous verification as other supported assets.

👉 Start verifying asset reserves with cutting-edge crypto tools now

Core Keywords

By combining cryptographic rigor with public accessibility, OKX sets a new standard for trust in digital finance. Whether you're a trader, investor, or observer, you can now verify—with mathematical certainty—that your assets are secure.