In an industry where trust is paramount, Proof of Reserves (PoR) has emerged as a cornerstone of transparency for cryptocurrency exchanges. As digital asset platforms grow in scale and complexity, users demand verifiable proof that their funds are secure and fully backed. OKX continues to lead this movement with its 32nd consecutive Proof of Reserves audit, confirming $28.4 billion in core assets held across on-chain wallets and third-party custodians.
This latest report reaffirms OKX’s unwavering commitment to financial integrity, solvency, and user protection—setting a benchmark for security standards in the crypto ecosystem.
Why Proof of Reserves Matters
At the heart of every trusted cryptocurrency exchange lies a fundamental responsibility: safeguarding user assets. For OKX, this means maintaining a 1:1 reserve ratio at all times—ensuring that every user deposit is fully backed by equivalent on-chain holdings.
Unlike traditional financial institutions that operate under fractional reserve models, OKX adopts a full-reserve model. This means the platform does not lend out or leverage user deposits, eliminating the risk of insolvency even during extreme market volatility.
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By publishing monthly PoR reports, OKX provides users and regulators alike with cryptographic evidence of its financial health. These audits help build long-term confidence, support regulatory compliance, and contribute to a more resilient and sustainable crypto economy.
What Is Proof of Reserves?
Proof of Reserves (PoR) is a cryptographic audit mechanism that verifies a crypto exchange holds sufficient assets to cover all customer liabilities. It ensures that user deposits are not only accounted for but are also fully backed by real, on-chain digital assets.
PoR achieves this through transparent, privacy-preserving verification methods, allowing independent parties to confirm the platform’s solvency without exposing sensitive user data such as individual balances or transaction histories.
The process involves three core components:
- On-chain wallet verification: Confirming ownership of wallet addresses via signed messages.
- User liability proof: Aggregating user balances using a Merkle tree structure.
- Reserve ratio calculation: Comparing total on-chain assets against total user liabilities.
OKX currently publishes PoR reports for 22 major cryptocurrencies, including high-liquidity tokens like BTC, ETH, and top-tier stablecoins such as USDT and USDC—all critical elements in maintaining broad market trust.
How Does Proof of Reserves Work?
OKX employs a robust, multi-layered verification process powered by advanced cryptography. Here's how it works:
1. Zero-Knowledge Proofs with zk-STARKs
OKX uses zk-STARKs (Zero-Knowledge Scalable Transparent Arguments of Knowledge) to cryptographically prove the validity of its reserves without revealing sensitive information. This method allows the platform to:
- Prove total asset holdings
- Verify user balance integrity
- Maintain complete privacy
zk-STARKs rely on the FRI (Fast Reed-Solomon Interactive Oracle Proof) protocol, enabling scalable and transparent verification that can be independently audited.
2. Merkle Tree Structure for User Balances
All user account balances are organized into a Merkle tree, where each leaf represents an individual account balance. The root hash of this tree serves as a single, verifiable summary of all user liabilities.
This structure enables users to:
- Confirm their own balance is included in the audit
- Validate the completeness and accuracy of the dataset
- Ensure no fraudulent accounts have been added
3. On-Chain Wallet Verification
OKX publishes a public list of its on-chain wallet addresses, each containing a signed message: "I am an OKX address." Users can verify these signatures using open-source tools to confirm ownership and check real-time balances via blockchain explorers.
4. Reserve Ratio Calculation
Finally, the total value of on-chain assets is compared to the total user liabilities derived from the Merkle root. If on-chain holdings equal or exceed liabilities, the reserve ratio is confirmed at or above 100%, proving full solvency.
Core Verification Rules in OKX’s PoR System
To ensure accuracy and trustworthiness, OKX applies three strict cryptographic constraints during each audit:
🔹 Rule 1: Total Balance Constraint
The sum of all user account balances must exactly match the total liabilities reported by the exchange. This prevents underreporting or manipulation of aggregate figures.
🔹 Rule 2: Non-Negative Balance Constraint
No user account may show a negative balance. This ensures all accounts maintain positive equity and prevents artificial inflation of net assets.
🔹 Rule 3: Inclusion Constraint
Every active user’s balance must be included as a leaf in the Merkle tree. This guarantees no accounts are omitted from the audit process.
These rules are enforced through zk-STARK proofs, which are publicly available and open for independent validation.
How to Self-Verify Proof of Reserves
Users aren’t required to take OKX’s word at face value—they can independently verify the PoR data themselves using open-source tools.
✅ Step 1: Verify Your Inclusion in the Merkle Tree
Reporting Period: September 2024 onward
- Visit the OKX Proof of Reserves portal and click "View Details".
- Click "Copy Data" and save it as
_inclusion_proof.jsonin a new folder. - Download OKX’s open-source zk-STARK verifier tool into the same directory.
- Run the validator tool to execute your local verification.
🟢 Success Message: "Inclusion Constraint Validation Passed"
🔴 Failure Message: "Inclusion Constraint Validation Failed"
This confirms whether your account balance was properly included in the audit.
✅ Step 2: Verify Total Balance & Non-Negative Balances
- From the same portal, go to the "Liability Report" tab and download the zk-STARK file.
- Extract the
sum_proof_data.jsonfile. - Place the open-source verification tool in the same root folder.
- Execute the zk-STARK validator.
🟢 Success Message: "Total Sum and Non-Negative Constraint Validation Passed"
This proves that:
- All balances are non-negative
- The total sum matches OKX’s reported liabilities
✅ Step 3: Verify Wallet Ownership & On-Chain Balances
To confirm OKX owns its published wallet addresses:
- Download the public wallet address list from the PoR portal.
- Use OKX’s open-source tool or any third-party signature verifier.
- Copy the BTC address, signature, and message ("I am an OKX address").
- Paste into the verification tool to authenticate ownership.
Once verified, use a blockchain explorer to compare the wallet’s balance against the block height snapshot provided in the report.
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Frequently Asked Questions (FAQ)
Q: What does a 100%+ reserve ratio mean?
A: A reserve ratio of 100% or higher means the exchange holds equal or greater assets than customer liabilities. For example, if users have deposited $10 billion worth of crypto, the exchange must hold at least $10 billion in on-chain reserves.
Q: Can I verify my own account balance?
A: Yes! You can download your inclusion proof and use OKX’s open-source tools to confirm your balance was included in the Merkle tree used for auditing.
Q: Are stablecoins included in Proof of Reserves?
A: Yes. OKX includes major stablecoins like USDT, USDC, DAI, and others in its PoR reports. Their reserves are verified both on-chain and through custodial attestations where applicable.
Q: How often are PoR audits conducted?
A: OKX publishes monthly Proof of Reserves reports, making it one of the most transparent exchanges in the industry.
Q: What is the difference between PoR and traditional audits?
A: Traditional audits rely on third-party firms and sampled data. PoR uses cryptographic proofs for real-time, full-scope verification—anyone can validate the results independently.
Q: Does Proof of Reserves prevent hacks?
A: While PoR doesn’t prevent hacking, it ensures that even after an incident, users’ funds remain fully backed. Combined with cold storage and multi-signature systems, it forms part of a comprehensive security framework.
Final Thoughts: Building a Transparent Crypto Future
Transparency isn’t just a feature—it’s a necessity in decentralized finance. With over $28.4 billion in verified reserves, OKX sets a global standard for accountability and operational integrity.
Through zk-STARKs, Merkle trees, public wallet disclosures, and open-source verification tools, OKX empowers users to move beyond blind trust and embrace verifiable truth.
As regulatory scrutiny increases and institutional adoption grows, Proof of Reserves will remain a vital tool for building confidence in digital asset platforms.
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