KEY TAKEAWAYS
- Kraken has completed its latest Proof of Reserves audit, confirming that client assets are fully backed by the platform.
- The audit covers major cryptocurrencies including Bitcoin, Ethereum, Solana, USD Coin, Tether, Ripple, and Cardano.
- Kraken’s PoR process includes total client liabilities, offering a comprehensive view of platform solvency.
- Kraken plans to publish quarterly PoR audits to maintain transparency and accountability in the cryptocurrency industry.
Kraken has announced the completion of its latest Proof of Reserves (PoR) audit, finalized as of June 30, 2025. The audit confirms that client assets held on the platform are backed 1:1 and beyond, covering major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Solana (SOL), USD Coin (USDC), Tether (USDT), Ripple (XRP), and Cardano (ADA). The full details of the audit can be found here.
Kraken emphasizes that transparency is a standard, not just a slogan. The PoR audit captures a comprehensive snapshot of client assets across all services, including margin accounts, futures holdings, and staked assets. This approach provides a full-spectrum view of customer exposure.
Understanding Proof of Reserves
Proof of Reserves is a cryptographic process that allows clients to independently verify that their assets are included in a third-party-audited snapshot of the platform’s liabilities. Kraken uses a Merkle tree to combine individual balances into a single cryptographic hash. Clients receive a personalized Merkle proof to confirm their inclusion without revealing personal details. An independent auditor then verifies that Kraken’s on-chain holdings exceed total client balances, ensuring full reserves.
Kraken’s Commitment to Transparency
Kraken’s PoR process stands out for its rigor and transparency. Unlike some platforms that only show assets, Kraken includes total client liabilities in every audit. This comprehensive approach ensures a full proof of reserves. Additionally, Kraken offers user-level verification through an open-source Merkle verification tool, allowing clients to verify their own inclusion.
Kraken has been conducting PoR audits since 2014, maintaining a consistent approach to transparency. The exchange plans to publish PoRs quarterly, alongside financial disclosures, to provide users with regular insights into platform solvency. Kraken is also working to expand the coverage of its PoRs to include more supported assets.
Kraken’s dedication to accountability and transparency reflects its commitment to making these practices an industry norm. The exchange continues to raise the bar for transparency in the cryptocurrency industry.
Why This Matters: Impact, Industry Trends & Expert Insights
Kraken’s latest Proof of Reserves (PoR) audit confirms that client assets are fully backed, enhancing transparency and trust in the platform.
In 2025, a significant trend in crypto proof of reserves is the increased emphasis on transparency and security by centralized exchanges (CEXs) to rebuild trust and address liquidity and solvency concerns. This aligns with Kraken’s comprehensive PoR audit, which demonstrates a commitment to transparency and security. CoinDesk
As per insights from The Coin Republic, proponents see PoR as a vital transparency tool that proves a platform holds sufficient digital assets to cover client liabilities, enhancing trust and stability. This supports Kraken’s efforts to maintain market confidence and set industry standards for transparency. The Coin Republic
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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.
