OKX, a leading global cryptocurrency exchange, has released its 28th consecutive Proof of Reserves (PoR) report, demonstrating a strong commitment to transparency and user fund security. The latest report reveals that the exchange holds $28.1 billion in primary assets backing customer funds, marking a significant 59% year-on-year increase.
This PoR report was independently audited and verified by the blockchain security firm Hacken, utilizing advanced zk-STARK proofs and cryptographic signature validations to ensure accuracy and reliability.
Reserve Ratios for Major Cryptocurrencies
The Proof of Reserves report provides detailed insight into the backing of user assets held on the exchange. A reserve ratio of 100% or higher indicates that the platform holds sufficient—or more than sufficient—assets to cover all user balances.
Here is a breakdown of OKX’s reserve ratios for its top assets:
- BTC: 104% reserve ratio, with $13.2 billion in holdings.
- ETH: 102% reserve ratio, with $4.9 billion in holdings.
- USDT: 102% reserve ratio, with $8.7 billion in holdings.
- USDC: 100% reserve ratio, with $1.3 billion in holdings.
A reserve ratio exceeding 100% means the exchange holds more of that specific digital asset than its users have deposited, providing an additional buffer of security.
“Over the past two years, we’ve significantly enhanced our PoR program by optimizing zk-STARK technology, reducing proof file size from 2.55GB to 598KB and expanding verifiable assets to 22 major cryptocurrencies. This combines with state-of-the-art encryption protocols and advanced wallet infrastructure to ensure both security and usability.”
— OKX
How OKX Maintains a Strong Proof of Reserves
Maintaining a robust and verifiable Proof of Reserves is a complex process that extends beyond simple asset backing. OKX attributes its consistent performance to a multi-layered security and protection framework designed to safeguard user funds.
Key components of this framework include:
- A Multi-Billion-Dollar Insurance Fund: This fund, primarily capitalized by OKX and supplemented by liquidation surpluses, is designed to mitigate risks associated with extreme market volatility and large-scale liquidations. It acts as a critical safety net for user assets.
- AI-Powered Security Tools: The exchange employs sophisticated artificial intelligence and machine learning systems for deepfake detection, identity verification, and advanced fraud detection. These tools analyze user behavior and transaction patterns in real-time to identify and prevent malicious activity.
- OKX Protect Initiative: This serves as an educational resource hub, providing users with the knowledge and tools needed to implement essential security measures on their own accounts, such as enabling two-factor authentication (2FA).
Commitment to Global Regulatory Compliance
In addition to its technical safeguards, OKX has proactively pursued regulatory licensing across major global jurisdictions. This commitment to compliance reinforces its operational integrity and provides users with greater confidence.
Major Payment Institution License in Singapore
In September 2024, OKX secured a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS). This license authorizes the exchange to offer digital payment token services and cross-border money transfers, including spot trading of cryptocurrencies for customers in Singapore.
Virtual Asset Service Provider Approval in Dubai
OKX's Dubai subsidiary, OKX Middle East Fintech FZE, received a Virtual Asset Service Provider (VASP) license from the Dubai Virtual Assets Regulatory Authority (VARA). This approval permits the company to provide virtual asset exchange services within the region.
Financial Services Registration in Australia
OKX Australia Financial Pty Ltd. is registered with AUSTRAC and holds an Australian Financial Services (AFS) license regulated by the Australian Securities and Investments Commission (ASIC). Since May 2024, this entity has offered spot trading to all users and derivatives trading to verified wholesale clients in Australia.
First MiCA-Licensed Global Exchange
A significant milestone was achieved when OKX became the first global crypto exchange to be approved under the European Union’s Markets in Crypto-Assets (MiCA) regulations. This license allows OKX to "passport" its services across the entire European Economic Area (EEA), enabling it to offer fully regulated and localized crypto services to over 400 million people in 28 countries.
For those interested in diving deeper into the technical aspects of reserve verification and security protocols, you can explore the latest audit details.
Frequently Asked Questions (FAQ)
What is a Proof of Reserves (PoR) report?
A Proof of Reserves is an independent audit that verifies a cryptocurrency exchange holds enough assets to cover all customer balances. It uses cryptographic techniques to prove solvency without compromising individual user privacy.
Why is a reserve ratio over 100% important?
A ratio exceeding 100%, such as OKX's 104% for Bitcoin, indicates the exchange holds more assets than its users have deposited. This provides an extra layer of security and demonstrates the platform's strong financial health.
How does zk-STARK technology improve Proof of Reserves?
zk-STARKs (Zero-Knowledge Scalable Transparent Arguments of Knowledge) allow an exchange to prove its reserves are sufficient without revealing sensitive commercial information. They enhance privacy, security, and the efficiency of the audit process.
What does regulatory licensing mean for a crypto exchange user?
Obtaining licenses from major authorities like MAS, VARA, and under MiCA means the exchange adheres to strict operational, security, and financial standards. This regulatory oversight offers users an added level of protection and legitimacy.
How can users verify the Proof of Reserves themselves?
Many exchanges, including OKX, provide tools on their websites for users to verify that their individual account balances are included in the larger attested reserve pool. This allows for personal confirmation of the audit's claims.