Crypto exchange OKX has revealed $7.5 billion worth reserves of Bitcoin (BTC), Ether (ETH), and Tether (USDT), with regard to its monthly proof-of-reserves (PoR) report. Insights from blockchain analytics firm CryptoQuant stated that OKX claims to have the “largest clean asset reserves among major exchanges,” as reported by Cointelegraph.
According to Cointelegraph, OKX is believed to keep 1:1 reserves, in order for the company’s on-chain assets to 100% correlate with customer’s balances. The report has projected current reserve ratios of 105% for BTC, 105% for ETH and 101% for USDT. Experts suggest that the term “clean” is added in PoR to define crypto assets that don’t include an exchange’s platform tokens and are created by high-market-capitalisation crypto assets.
“A clean reserve is the total reserve of each exchange, excluding exchange native token. There can be a risk in the exchange’s liquidity if a self-issued token holds a significant percentage of the total reserve amount. Hence, we have applied the clean reserve to visualize the liquidity of each exchange transparently,” CryptoQuant stated.
On the basis of information by Cointelegraph, OKX’s PoR report made the inclusion of historical reserves ratio data and liabilities. The company claims to have released over 23,000 addresses with regard to its Merkle tree PoR program “and will continue to use these addresses to allow the public to view asset flows.”
Moreover, Cointelegraph noted that the industry expects liquidity-based disclosures through the usage of PoR reports since FTX’s collapse in November, 2022. Since then, crypto exchanges have released third-party reports, including Binance, KuCoin, Crypto.com and Bitfinex.
(With insights from Cointelegraph)