Proof of Reserves: Cryptocurrency Asset Verification

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In the rapidly evolving world of digital finance, trust and transparency are more critical than ever. As a leading cryptocurrency exchange, OKX continues to set industry benchmarks with its 32nd Proof of Reserves (PoR) report, confirming $28.4 billion in primary assets held across its ecosystem. This milestone reinforces OKX’s unwavering commitment to security, solvency, and user confidence.

Why Proof of Reserves Matters

For users storing digital assets on exchanges, the safety of their funds is paramount. Unlike traditional financial institutions, crypto platforms operate in a decentralized and often unregulated environment—making independent verification essential.

Proof of Reserves ensures that customer deposits are fully backed 1:1 by real on-chain assets, eliminating the risk of fractional reserve practices that could lead to insolvency. By publishing regular PoR reports, OKX provides verifiable proof that every user's balance is secured by equivalent reserves.

This level of transparency not only protects users but also strengthens regulatory trust and promotes long-term sustainability within the cryptocurrency ecosystem.

👉 Discover how you can verify your assets are fully backed today.

What Is Proof of Reserves?

Proof of Reserves (PoR) is a cryptographic audit mechanism that proves a cryptocurrency exchange holds sufficient assets to cover all customer liabilities. It verifies that:

Crucially, PoR achieves this without exposing sensitive user data, preserving privacy while ensuring accountability.

OKX conducts monthly PoR audits for 22 major cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and leading stablecoins like USDT and USDC—ensuring broad coverage of user-held assets.

How OKX’s Proof of Reserves Works

OKX employs a cutting-edge, open-source verification system powered by zk-STARKs (Zero-Knowledge Scalable Transparent Arguments of Knowledge)—a privacy-preserving cryptographic protocol. Here's how it works:

Step 1: Snapshot and Merkle Tree Construction

Each user’s asset balance is captured in a time-stamped snapshot and organized into an encrypted Merkle tree. This creates a tamper-evident structure where each user corresponds to a unique "leaf" in the tree.

Step 2: Zero-Knowledge Proof Generation

Using zk-STARKs, OKX generates a mathematical proof that validates three core constraints without revealing any individual data:

  1. Total Balance Constraint
    The sum of all user balances matches the total liabilities claimed by OKX.
  2. Non-Negative Constraint
    No account has a negative balance, ensuring all users have positive equity.
  3. Inclusion Constraint
    Every user’s balance is included in the Merkle tree, confirming no omissions.

Step 3: On-Chain Wallet Verification

OKX publishes its wallet addresses with signed messages ("I am an OKX address") to prove ownership. Users can independently verify these signatures using blockchain explorers or OKX’s open-source tools.

Step 4: Reserve Ratio Calculation

By comparing total user liabilities (from the Merkle root) against actual on-chain wallet balances, anyone can confirm that OKX maintains a reserve ratio at or above 100%.

What Is zk-STARK?

zk-STARK is a trustless, scalable zero-knowledge proof system that allows one party to prove the validity of data without revealing the data itself. Unlike older protocols, zk-STARKs do not require a trusted setup and are resistant to quantum attacks.

At OKX, zk-STARK technology enables:

This makes it ideal for proving solvency while protecting user confidentiality.

How to Perform Self-Verification

You don’t have to take OKX’s word for it—anyone can independently verify the Proof of Reserves. Here’s how:

🔹 Verify the Inclusion Constraint (User-Level Proof)

Ensure your balance is part of the official audit:

  1. Go to the Proof of Reserves page and click Details under your relevant report period (September 2024 onward).
  2. Click Copy data and save the string as _inclusion_proof.json in a new folder.
  3. Download the OKX zk-STARK Validator tool and place it in the same folder.
  4. Run the validator—it will automatically process your file.

✅ Success message:
"Inclusion constraint validation passed"

❌ Failure message:
"Inclusion constraint validation failed"

Note: Historical Merkle trees are available from November 2022 onward, with updated versions released regularly.

👉 Start verifying your asset inclusion now with step-by-step guidance.

🔹 Verify Total Balance & Non-Negative Constraints

Confirm OKX’s overall liability claims:

  1. From the same portal, go to the Liability Report tab and download the zk-STARK file.
  2. Unzip it to reveal sum_proof_data.json.
  3. Place the zk-STARK Validator in the same directory.
  4. Launch the tool to run the verification.

✅ Success message:
"Total sum and non-negative constraint validation passed"

❌ Failure message:
"Total sum and non-negative constraint validation failed"

This confirms that:

🔹 Verify Wallet Ownership and On-Chain Balances

Check if OKX truly controls its published wallets:

  1. Download the public list of OKX wallet addresses (by crypto type).
  2. Copy the BTC/ETH address, digital signature, and signed message ("I am an OKX address").
  3. Use a third-party verifier or OKX’s open-source tool to validate the signature.
  4. Cross-check the wallet balance at the specified block height using a blockchain explorer.

If both signature and balance match, ownership is confirmed.

Frequently Asked Questions (FAQ)

Q1: What does a 100%+ reserve ratio mean?

A reserve ratio of 100% or higher means OKX holds at least as many assets on-chain as users have deposited. A ratio above 100% indicates surplus reserves, further strengthening platform solvency.

Q2: Can I verify my own balance privately?

Yes. Using the inclusion proof tool, you can confirm your balance was included in the audit without revealing your identity or amount to anyone else.

Q3: How often are Proof of Reserves reports published?

OKX publishes PoR reports monthly, ensuring continuous transparency and up-to-date verification opportunities.

Q4: Are stablecoins included in reserves?

Yes. Major stablecoins like USDT, USDC, and DAI are fully included and regularly audited as part of OKX’s reserve assets.

Q5: Why use zk-STARK instead of other proof systems?

zk-STARK offers superior scalability, transparency, and quantum resistance compared to alternatives like zk-SNARKs. It requires no trusted setup, making it more secure and verifiable by design.

Q6: Is the verification process technical? Can beginners do it?

While some steps involve technical tools, OKX provides detailed guides and open-source software to help users of all levels complete verification confidently.

Core Keywords

Maintaining trust in digital asset custody starts with verifiable facts—not promises. With over $28.4 billion in verified reserves, transparent zk-STARK proofs, and full self-verification capabilities, OKX leads the industry in accountability and innovation.

Whether you're a seasoned trader or new to crypto, knowing your assets are secure should never be optional.

👉 See how OKX sets the standard for exchange transparency—verify your trust today.