KEY TAKEAWAYS
- Kraken’s latest Proof of Reserves attestation confirms over $21.5 billion in client assets, including major cryptocurrencies like Bitcoin, Ethereum, and Solana.
- The attestation process involves third-party verification to ensure Kraken’s full control over on-chain assets, exceeding client liabilities.
- Clients can verify their balances through Kraken Pro, using a Merkle Tree for secure and private validation.
- The Network Firm, a CPA firm, provides independent attestation services to validate Kraken’s asset control.
Kraken has announced its latest Proof of Reserves attestation, covering a total of over $21.5 billion in client assets. The attestation, which became available on November 1, 2024, includes widely held cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Solana (SOL), USD Coin (USDC), Tether (USDT), and Ripple (XRP).
This comprehensive report encompasses spot positions, open margin positions, futures balances, and on-chain staked amounts of eligible assets like ETH and SOL. Kraken has been committed to the Proof of Reserves process since pioneering it in 2014 and has undertaken it regularly since January 2022.
Understanding the Proof of Reserves Process
The Proof of Reserves process involves an independent third-party attestation to verify that Kraken backs client account holdings with fully reserved assets. Clients who held balances as of the snapshot date can verify their balances are backed with on-chain assets by logging into their Kraken Pro account.
The process includes the total sum of all client liabilities and a method for clients to cryptographically verify their account details and balances. An attestation from a third party confirms that Kraken has full control over on-chain assets exceeding these liabilities.
Kraken employs a Merkle Tree to represent individual account balances, identifiable by an encrypted, unique hash. This method allows for verification without exposing the underlying data set. Clients can download the full path within the Merkle Tree to verify the value and validity of the root hash included in the report.
Third-Party Verification and Client Engagement
Kraken continues to engage The Network Firm, a registered CPA firm specializing in accounting and attestation services for crypto businesses, to attest to the control over wallets holding client balances.
Clients are encouraged to sign in to Kraken and self-verify their balances included in this review. It is important to note that this Proof of Reserves only covers assets on the platform as of September 30, 2024. For more detailed information, clients can access The Network Firm’s full report via the verification portal.
For further insights into Kraken’s Proof of Reserves process, clients can refer to the company’s blog post titled ‘What is Proof of Reserves? A Beginner’s Guide.’ Any additional questions can be directed to Kraken support.
For more information, visit the official announcement here.
Disclaimer: The views expressed in this article are those of the authors and do not necessarily reflect the official policy of CoinsHolder. Content, including that generated with the help of AI, is for informational purposes only and is not intended as legal, financial, or professional advice. Readers should do their research before taking any actions related to the company and carry full responsibility for their decisions.
