OKEx, the world’s second largest crypto exchange by trading volume, today published its third monthly Proof of Reserves (POR), showing $7.5 billion in net assets.
The Proof of Reserves report confirms that the custodian holds the assets it claims to hold on behalf of its clients.
OKEx’s asset reserves can be considered clean when they do not include its native tokens. In this case, OKB. Instead, their reserves show holdings of bitcoin (BTC), ethereum (ETH) and the stablecoin, USDT. These are all coins with significant market cap and trading volume.
Blockchain analytics firm CryptoQuant monitors PoR across the industry and found OKEx’s assets to be “100% clean”. This is the first monthly PoR report published by OKX.
Their CMO, Haider Rafiq, said: “Security, transparency and trust are the core principles of the OKEx business process and customer service philosophy. By publishing our POR monthly we have already achieved a leadership position. As the industry leader for POR As the benchmarks continue to take shape, we expect the quality of our reserve assets to be one of many key factors for OKEx in the market.
The OKX PoR protocol is open source and available to the public on GitHub. Additional OKX holdings can be viewed on the OKX Nansen Dashboard.
OKEx has said that it will continue to publish monthly PoR reports. The crypto industry has demanded similar action from all custodians of funds to avoid another FTX from happening again.
CryptoQuant finds OKEx assets 100% clean
In order to prove solvency, exchanges must not hold a substantial amount of their own native tokens in reserves. Native tokens are tokens created by the exchange itself. They are often used as a governance mechanism and to provide an incentive to use their product.
The FTX collapse was sparked by a report from CoinDesk’s Ian Ellison on FTX’s native token, FTT. They found that Alameda Research, a trading firm founded by Bankman-Fried and affiliated with FTX, held significant amounts of FTX on its balance sheet.
Binance CEO Tweeted Shortly thereafter it will sell all of its remaining FTTs. Confidence in the token collapsed, and the FTX house of cards collapsed shortly after.
disclaimer
BeInCrypto has reached out to the company or the person involved in the story for an official statement regarding the recent development, but has yet to hear back.