We’re proud to as soon as once more reaffirm our trade management in transparency with our newest Proof of Reserves (PoR), accomplished as of March 31, 2025, together with shopper holdings in BTC, ETH, SOL, USDC, USDT, XRP — and for the primary time — ADA. This rigorous verification course of confirms we maintain ample property to completely again shopper balances. We don’t simply ask you to belief us – we ask you to cryptographically confirm our custody of your cryptoassets.
If you happen to’re model new to PoR, take a look at our What’s Proof of Reserves? A Newbie’s Information weblog put up.
Our newest PoR Bitcoin reserve outcome: 114.9% protection
In our most up-to-date PoR, we verified that we maintain 192,091.25 BTC in our wallets, whereas buyer balances complete 167,188.68 BTC. This leads to a reserve ratio of 114.9%, which means we maintain almost 15% extra Bitcoin than we owe to our customers.
Be aware our PoR doesn’t simply embrace spot holdings – it additionally incorporates margin positions, futures balances and even staked property. This holistic method ensures that every one sorts of buyer publicity are thought of. And there are different methods our PoR technique continues to set the trade commonplace.
Simply what’s PoR?
PoR is a cryptographic course of that enables cryptocurrency exchanges to publicly reveal that they maintain person property in full. Kraken makes use of a Merkle tree – a cryptographic knowledge construction that compiles all person balances right into a single root hash – permitting customers to confirm that their particular balances had been included, with out compromising private privateness.A 3rd social gathering then verifies that the change’s onchain holdings are equal to or larger than complete shopper balances. This helps verify that we’re not working on fractional reserves.
Not all PoRs are created equal
Whereas many exchanges now provide some type of what they name a PoR, our method stands out in a number of key methods:
- Full legal responsibility inclusion
We don’t simply showcase property – we additionally disclose shopper liabilities. Many platforms omit this significant half of the equation, which can provide a deceptive impression of solvency. - Person-level verification instruments
We permit customers to independently confirm that their balances had been included within the PoR course of by way of Merkle tree proofs. This added transparency builds belief and accountability. - Constant and ongoing transparency
We don’t deal with PoR as a one-time PR train. Having pioneered the method in 2014, we conduct it routinely, making certain customers have constant visibility into how the platform is managing their funds.
As a result of “Take our phrase for it” isn’t adequate
Following the collapse of a number of distinguished crypto exchanges – most notably FTX – purchasers should demand transparency and accountability. PoR supplies a transparent, verifiable approach for us to show that shopper property are secure and totally accounted for.
Our excessive reserve ratio and user-verifiable methodology are a direct response to this want. It’s not nearly saying funds are secure – almost each change that has ever failed has promised shopper funds had been secure. It’s about proving it: Cryptographically, independently and repeatedly.
Extra proof, extra usually: Transferring to a quarterly PoR cadence
Trying forward, we decide to releasing a PoR quarterly, together with our previous-quarter monetary outcomes, in an effort to offer much more frequent transparency. Moreover, we’re working towards increasing the scope of future PoRs to incorporate a broader vary of supported property, additional strengthening our dedication to accountability throughout all the platform.
Since 2014, we now have been a pacesetter in setting – and elevating – the PoR commonplace for crypto holders looking for a reliable and forward-looking change.