Proof of Reserves | Cryptocurrency Asset Verification

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In the fast-evolving world of digital finance, trust is the cornerstone of every transaction. As cryptocurrency exchanges grow in scale and influence, ensuring the security and transparency of user assets becomes more critical than ever. OKX continues to lead the industry 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 accountability, solvency, and user protection.

Why Is Proof of Reserves Important?

For any cryptocurrency exchange, safeguarding customer funds isn’t just a responsibility—it's a necessity. At OKX, we maintain a strict 1:1 reserve ratio, meaning every user deposit is fully backed by real, on-chain digital assets. This ensures that even under extreme market conditions, user funds remain secure and accessible.

Our on-chain wallet holdings are publicly verifiable, allowing anyone to confirm that customer deposits are fully backed—without compromising user privacy. By publishing monthly Proof of Reserves reports, OKX sets a high benchmark for transparency in the crypto industry.

This level of openness does more than build user confidence—it strengthens relationships with regulators and contributes to a healthier, more sustainable blockchain ecosystem. In an industry where trust can be fragile, OKX’s consistent PoR reporting offers tangible proof of financial integrity.

👉 Discover how you can verify your assets are securely backed on a transparent platform.

What Is Proof of Reserves?

Proof of Reserves (PoR) is a cryptographic verification method that proves a cryptocurrency exchange holds sufficient assets to cover all user deposits. It ensures that custodial platforms remain solvent and that customer funds are not misused or leveraged beyond their value.

Through PoR, exchanges like OKX demonstrate, in real time, the total amount of digital assets held across their on-chain wallets. This verification happens without exposing individual account balances, preserving privacy while ensuring full transparency at the aggregate level.

OKX currently provides reserve reports for 22 major cryptocurrencies, including high-liquidity assets such as Bitcoin (BTC), Ethereum (ETH), and top-tier stablecoins like USDT and USDC.

How Does Our Proof of Reserves Work?

OKX employs a cutting-edge, open-source verification system built on advanced cryptography. Here’s how it works:

  1. zk-STARK Proofs: We use Zero-Knowledge Scalable Transparent Arguments of Knowledge (zk-STARKs) to cryptographically prove that all user balances are accounted for—without revealing sensitive data.
  2. Wallet Ownership Verification: We publicly disclose our on-chain wallet addresses, each signed with a message confirming ownership: "I am an OKX address."
  3. Reserve Ratio Validation: By comparing total user liabilities (account balances) with total on-chain holdings, we verify that reserves meet or exceed obligations—proving a 1:1 or higher backing ratio.

This multi-layered approach ensures accuracy, privacy, and trust—all verifiable by users and third parties.

Understanding zk-STARK Technology

zk-STARK is a powerful zero-knowledge proof system that allows one party to prove the truth of a statement without revealing the underlying data. Unlike traditional audits, zk-STARK enables OKX to validate massive datasets—like millions of user balances—with minimal computational overhead and maximum security.

Key advantages of zk-STARK:

OKX leverages zk-STARK to enforce three core constraints in its liability proofs:

Rule 1: Total Balance Constraint

The sum of all individual user balances must equal the total liability claimed by OKX. This ensures no discrepancies exist between reported and actual holdings.

Rule 2: Non-Negative Constraint

Every user account must have a positive or zero balance. Negative balances would indicate insolvency or accounting errors—both of which are structurally prevented.

Rule 3: Inclusion Constraint

Every user’s balance must be included in the Merkle tree used for verification. This guarantees no accounts are omitted from the audit.

These rules are mathematically enforced through zk-STARK proofs, making fraud or manipulation practically impossible.

👉 See how next-generation cryptography secures your digital assets today.

How to Verify OKX’s Proof of Reserves

Transparency means nothing if it can’t be independently verified. OKX empowers users and auditors to perform self-checks using open-source tools and public data.

Step 1: Verify Inclusion Constraint (User Balance Inclusion)

Starting from September 2024, users can confirm their balances were included in the PoR snapshot:

  1. Go to your account’s Proof of Reserves section and click Details.
  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 the JSON file.

✅ Success Message: "Inclusion constraint validation passed"
❌ Failure Message: "Inclusion constraint validation failed"

You can access historical Merkle trees:

Step 2: Verify Total Balance & Non-Negative Constraints

To confirm OKX’s overall liability claims:

  1. From the Liability Report tab, download the zk-STARK file.
  2. Extract sum_proof_data.json.
  3. Place the OKX validator tool in the same directory.
  4. Run the validator.

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

This confirms that:

Step 3: Verify Wallet Address Ownership

OKX publishes its on-chain wallet addresses with signed ownership proofs. Here’s how to verify them:

  1. Download the public wallet list from OKX.
  2. Use a third-party or OKX-provided signature verification tool.
  3. Copy the BTC/ETH address, signature, and message ("I am an OKX address").
  4. Validate the signature against the public key.

If valid, ownership is confirmed.

Next, check the wallet balance at a specific block height using blockchain explorers or OKX’s verification tools.

Frequently Asked Questions (FAQ)

Q1: What is the purpose of Proof of Reserves?

Proof of Reserves ensures that a crypto exchange holds enough assets to cover all user deposits. It promotes transparency, prevents insolvency, and builds trust among users and regulators.

Q2: How often does OKX publish Proof of Reserves?

OKX publishes Proof of Reserves reports monthly, making it one of the most consistent and transparent exchanges in the industry.

Q3: Can I verify my own account balance in the PoR?

Yes. Using the inclusion proof tool and your personal data file, you can confirm your balance was included in the Merkle tree used for auditing.

Q4: Does Proof of Reserves prevent exchange hacks?

While PoR doesn’t prevent hacking, it ensures that even after incidents, sufficient reserves exist to cover user funds—provided the exchange remains solvent.

Q5: What makes OKX’s PoR different from others?

OKX uses zk-STARKs, offers open-source tools, supports 22+ assets, and provides public wallet lists with signed messages, enabling full end-to-end verification.

Q6: Are stablecoins included in OKX’s reserves?

Yes. Major stablecoins like USDT, USDC, and DAI are included in reserve calculations and undergo the same rigorous verification process as other assets.

Core Keywords

OKX remains at the forefront of crypto transparency with its 32nd consecutive Proof of Reserves report—backing over $28.4 billion in assets with verifiable, cryptographic proof. By combining cutting-edge technology like zk-STARKs with open-source tools and public data, OKX empowers users to independently verify their fund security.

In a digital economy where trust is earned through action—not words—OKX sets the standard for accountability.

👉 Join a platform where your assets are always provably secure.