The worldwide cryptocurrency trade OKX launched its fifth version of its proof-of-reserves (PoR) report, which it started releasing in Nov. 2022 in its effort for extra transparency within the trade. 

In accordance with the newest version, OKX holds $8.9 billion throughout Bitcoin (BTC), Ethereum (ETH) and the Tether stablecoin (USDT). This places the reserve ratios of BTC, ETH and USDT at 103%, 103% and 102%, respectively.

This newest launch additionally comes because the trade upgraded its PoR system with extra transparency by making full liabilities (i.e. the full steadiness of person deposits) publicly accessible.

Cointelegraph spoke with Lennix Lai, the managing director of World Institutional at OKX, concerning these additional steps in the direction of transparency.

Lai mentioned that current occasions in trade spotlight that, “crypto-native challenges require crypto-native options.”

“The blockchain and crypto/Web3 trade is constructed on expertise that allows trustless transactions on public blockchains, and this inherent transparency is extremely worthwhile.”

Many exchanges within the trade – like Binance, Crypto.com and Bybit – have launched such Merkle-Tree-based verification proofs in an effort to protect the integrity of the trade after the FTX liquidation scandal.

“The FTX disaster had a silver lining in that it made profitable companies double down on safety and transparency and motivated the trade to innovate on this space.”

Lai mentioned the brand new mantra of the trade is “don’t belief – confirm.” He mentioned over 300,000 customers have already seen the reserves or verified their liabilities within the OKX ecosystem.

The brand new transparency mechanism that made the full steadiness of person deposits seen to the general public maintains person privateness nonetheless, via splitting and shuffling account liabilities within the tree via an answer referred to as ‘splitting leaf nodes.’

In accordance with Lai, OKX can even be including zero information proof to our PoR within the coming weeks.

Associated: Tether’s belongings exceed liabilities in new reserves report by BDO

After the crash of Silicon Valley Financial institution (SVB) transparency within the higher monetary trade has turn out to be much more of a speaking level. Lai mentioned throughout instances of uncertainty, such because the banking disaster: 

“Proof-of-reserves can present customers with real-time, on-chain verification of reserves and liabilities via clear expertise – on this manner conventional finance differs from crypto.”

Nevertheless, again on Mar. 8, the Public Firm Accounting Oversight Board, a U.S.-based watchdog overseeing audits of public firms, issued a warning to traders about PoRs. The board mentioned these stories “don’t present any significant assurance to traders or the general public.”

Nonetheless, firms within the crypto trade proceed efforts in transparency. On Feb. 10 Binance additionally upgraded its PoR system to incorporate zk-snarks.