Kraken successfully passes November 2023 Proof of Reserves

This astir caller Proof of Reserves covered the astir wide held cryptocurrencies: BTC, ETH, USDC, USDT, DOT, ADA and XRP. It besides included the unfastened borderline positions, futures balances and on-chain staked amounts of those assets. In total, astir 78% of each clients’ cryptoassets held connected the level were covered by this astir caller attestation. 

We pioneered the Proof of Reserves process successful 2014 and person committed to undertaking it regularly since January 2022. 

Why this matters

Proof of Reserves is inactive a comparatively caller process; it has nary universally accepted explanation oregon requirements. At Kraken, Proof of Reserves includes an autarkic 3rd enactment attestation to beryllium we backmost your relationship holdings with in-kind, afloat reserved assets. 

As with our erstwhile Proof of Reserves, we usage a Merkle Tree to correspond idiosyncratic relationship balances identifiable by an encrypted, unsocial hash (a drawstring of characters). We past successively hash these records until a azygous Merkle root hash represents the sum full of lawsuit balances covered. This means relationship balances tin beryllium easy verified arsenic included successful the Proof of Reserves without having to exposure the underlying, unencrypted information set. 

In this Proof of Reserves, clients tin present download the afloat way wrong the Merkle Tree, from their relationship to the root. They tin reappraisal its construction, summation a amended knowing of however Kraken’s Proof of Reserves process works and personally verify the worth and validity of the basal hash included successful the report. 

Kraken’s Proof of Reserves includes the following:

• The full sum of each lawsuit liabilities (or balances)
• A means for clients to cryptographically verify that their relationship details and idiosyncratic balances were included successful the full sum
• Attestation from a 3rd enactment who has verified Kraken has afloat power implicit on-chain assets successful excess of these liabilities

We engaged The Network Firm, a registered CPA steadfast specializing successful accounting and attestation services for crypto businesses, to attest to the information that we had afloat power implicit the wallets holding lawsuit balances. 

How bash I find retired more?

If you haven’t already, we promote you to sign successful to Kraken and self-verify your balances were included successful this review. Please carnivore successful caput that this Proof of Reserves lone covers assets that were connected the level connected November 30, 2023. Any assets held connected the level earlier oregon since that day are not included successful this report. 
For a elaborate runthrough, delight cheque retired The Network Firm’s afloat study accessible via the verification portal. You tin besides cheque retired our What is Proof of Reserves? A Beginner’s Guide blog post. If you person immoderate further questions, delight scope retired to Kraken support.