Emphasizing its effort to prevent the insolvency of its platform and ensure the accuracy of its customer funds and net balances, international crypto exchange OKX presented in its 28th Proof of Reserves (PoR) report that it holds $28.1 billion in primary assets backing customer funds, representing a 59% year-on-year increase.
The PoR report for OKX was audited and verified by blockchain security firm Hacken using advanced zk-STARK proofs and signature validations.
OKX Reserve Ratio
The following are OKX’s reserve ratios for its top assets, along with the corresponding holdings:
- BTC: 104%, $13.2 billion worth of holdings
- ETH: 102%, $4.9 billion worth of holdings
- USDT: 102%, $8.7 billion worth of holdings
- USDC: 100%, $1.3 billion worth of holdings
A 100% reserve ratio means that for every unit of a token a user holds on OKX, the exchange fully backs it with real digital assets. A ratio exceeding 100% indicates that the exchange holds more tokens than its users.
“Over the past two years, we’ve significantly enhanced our PoR program by optimizing zk-STARK technology, reducing proof file size from 2.55GB to 598KB and expanding verifiable assets to 22 major cryptocurrencies. This combines with state-of-the-art encryption protocols and advanced wallet infrastructure to ensure both security and usability.”
OKX
Why the Proof of Reserves is Maintained
According to OKX, the exchange has maintained a balanced PoR due to multiple layers of protection, including:
- A multi-billion-dollar insurance fund, primarily funded by OKX and liquidation surpluses, which is used to mitigate the risk of large-scale liquidations. This fund is only available in select markets.
- AI-powered security tools, including deepfake detection and ID verification to distinguish legitimate users from imposters, as well as AI and machine learning tools for fraud detection through behavioral and transaction analysis.
- OKX Protect, an educational hub that helps customers implement essential security measures.
Beyond maintaining a balanced PoR, OKX also highlights its proactiveness in regulatory compliance, as reflected in its licensing achievements.
Recent Announcements
Singapore License
In September 2024, CEO Gracie Lin announced that it has secured a Major Payment Institution license from the Monetary Authority of Singapore, granting the exchange the authority to offer digital payment token and cross-border money transfer services, including spot (buy and sell) cryptocurrency trading for customers in Singapore.
Dubai Approval
Meanwhile, OKX Middle East Fintech FZE, the Dubai subsidiary of OKX, received a Virtual Asset Service Provider license from the Dubai Virtual Assets Regulatory Authority for VA Exchange Services.
Australia Registration
Thirdly, OKX Australia Financial Pty Ltd., a local entity that holds an Australia Financial Services license regulated by ASIC, and is also AUSTRAC registered, announced in May 2024 that it will offer spot (buy & sell) trading for all users, as well as derivatives trading for verified wholesale clients in the country.
First Exchange to be MiCA-Approved
Consequently, OKX became the first MiCA-licensed global crypto exchange to passport its services across Europe, allowing it to be fully regulated and provide localized crypto services to over 400 million people in 28 EEA countries.
This article is published on BitPinas: OKX’s 28th Proof of Reserves Report: $28.1B in Assets
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