Cryptocurrency exchange OKX is launching a new proof-of-reserve system that allows customers to verify their digital assets.
Seychelles firm He speaks OKX Proof of Reserves (PoR) will provide users with the opportunity to make sure that their funds are backed by real assets in a ratio of 1:1.
“At OKX, we hold a 1:1 reserve of all client assets on our platform and are proud of our longstanding reputation for providing best-in-class security. We are now giving you more transparency than ever before with PoR, a total crypto audit.”
OKX is launching its first PoR, aiming to set a new standard for transparency, risk management and user protection following the collapse of rival FTX after an unexpected spike in withdrawals caused one of the crypto industry’s most prominent exchanges to fail to meet its financial obligations.
“Our online wallets are now public so you can make sure your funds are backed by real assets.”
The company says it has also implemented a self-check feature that will let users know if their assets are safe. Initially, the feature supports royal crypto bitcoin (BTC), top altcoin Ethereum (ETH), and stablecoin Tether (USDT), but OKX says it will add support for more assets in the future.
“Moving forward, we will be conducting regular Proof of Reserve reviews to update our collateral balance and the status of your assets in our reserves.”
While they have faced stricter scrutiny since the FTX crash, some crypto firms do not share OKX’s views on providing proof of reserve.
For example, asset management titan Grayscale says it has no plans to release cryptographic proof of its reserves, citing security concerns.
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