OKX Boosts Crypto Reserves by $3.8b in 2023

OKX Boosts Crypto Reserves by $3.8b in 2023

Time Stamp: July 26, 2023 5:30 AM
Source Node: 2785792

In an ongoing
effort to maintain transparency in the crypto sphere, OKX has published its
ninth consecutive monthly Proof of Reserves (PoR). The latest PoR indicates a
substantial balance of $11.3 billion, majorly in Bitcoin (BTC), Ethereum (ETH)
and Tether (USDT).

One of
the world’s largest cryptocurrency exchanges by trading volume maintained the
reserves it reported a month ago and increased them by $1.3 billion over the past two
months.

The crypto exchange’s
PoR is not confined to BTC, ETH and USDT mentioned above. It extends to 22
popular digital assets, including USDC, XRP, DOGE, SOL, LTC and many others.
OKX has consistently exceeded its 100% reserve ratio across these assets for the
past nine months, maintaining the stability of its assets.

OKX’s
reserves are principally stored in off-chain cold storage. The company has
observed significant user engagement with its PoR, noting hundreds of thousands
of user interactions with its PoR page and the self-audit tool since its
inception in late 2022.

PoR reports
became popular after the collapse of the FTX exchange in November 2022 and were
intended to reassure users who were panicking about withdrawing their funds
from decentralized exchanges. As part of the report, the exchange shows how
many assets it holds and what liabilities it retains against its users. To
enhance its credibility, the PoR should be prepared by an outside company and
repeated regularly.

“Public-facing
disclosures of both reserves and liabilities are essential to ensure long-term
accountability in our industry,” Lennix Lai, the Global Chief Commercial
Officer at OKX, commented on the commitment to regulatory disclosures.

“However,
point-in-time attestations of reserve holdings mean little — instead, sustained
and consistent disclosures are needed. As the industry leader when it comes to
monthly PoR reporting, with more consecutive monthly snapshots than any other
top exchange, our commitment to transparency is unwavering.”

Furthermore,
the company currently maintains a reserve ratio of 103% across BTC, ETH, and
USDT. In tandem with publishing its monthly PoR, OKX has made the public more than
210,000 addresses linked to its PoR program.

OKX Boosts Crypto Reserves
by $3.8b in 2023

Although
the value of OKX’s reserves compared to the June report remains unchanged, they
have increased $1.3 billion compared to May. Since the beginning of 2023,
OKX has increased its cryptocurrency reserves $3.8 billion, from $7.5
billion, which was reported at the beginning of the year as $11.3 billion in July.

In
addition, OKX is applying for a French digital asset service provider (DASP)
license to establish itself as a regional hub in the country. In the meantime, OKX
is making its presence felt in other regions of the world. The exchange , which
already has authorization in the Bahamas and a temporary license in Dubai,
plans to apply for a license for digital assets in Hong Kong. Also, OKX has
already opened an office in China’s self-administrative region. After just
one month Hong Kong legalized crypto, and OKX scooped up more than 10,000 new users.

In an ongoing
effort to maintain transparency in the crypto sphere, OKX has published its
ninth consecutive monthly Proof of Reserves (PoR). The latest PoR indicates a
substantial balance of $11.3 billion, majorly in Bitcoin (BTC), Ethereum (ETH)
and Tether (USDT).

One of
the world’s largest cryptocurrency exchanges by trading volume maintained the
reserves it reported a month ago and increased them by $1.3 billion over the past two
months.

The crypto exchange’s
PoR is not confined to BTC, ETH and USDT mentioned above. It extends to 22
popular digital assets, including USDC, XRP, DOGE, SOL, LTC and many others.
OKX has consistently exceeded its 100% reserve ratio across these assets for the
past nine months, maintaining the stability of its assets.

OKX’s
reserves are principally stored in off-chain cold storage. The company has
observed significant user engagement with its PoR, noting hundreds of thousands
of user interactions with its PoR page and the self-audit tool since its
inception in late 2022.

PoR reports
became popular after the collapse of the FTX exchange in November 2022 and were
intended to reassure users who were panicking about withdrawing their funds
from decentralized exchanges. As part of the report, the exchange shows how
many assets it holds and what liabilities it retains against its users. To
enhance its credibility, the PoR should be prepared by an outside company and
repeated regularly.

“Public-facing
disclosures of both reserves and liabilities are essential to ensure long-term
accountability in our industry,” Lennix Lai, the Global Chief Commercial
Officer at OKX, commented on the commitment to regulatory disclosures.

“However,
point-in-time attestations of reserve holdings mean little — instead, sustained
and consistent disclosures are needed. As the industry leader when it comes to
monthly PoR reporting, with more consecutive monthly snapshots than any other
top exchange, our commitment to transparency is unwavering.”

Furthermore,
the company currently maintains a reserve ratio of 103% across BTC, ETH, and
USDT. In tandem with publishing its monthly PoR, OKX has made the public more than
210,000 addresses linked to its PoR program.

OKX Boosts Crypto Reserves
by $3.8b in 2023

Although
the value of OKX’s reserves compared to the June report remains unchanged, they
have increased $1.3 billion compared to May. Since the beginning of 2023,
OKX has increased its cryptocurrency reserves $3.8 billion, from $7.5
billion, which was reported at the beginning of the year as $11.3 billion in July.

In
addition, OKX is applying for a French digital asset service provider (DASP)
license to establish itself as a regional hub in the country. In the meantime, OKX
is making its presence felt in other regions of the world. The exchange , which
already has authorization in the Bahamas and a temporary license in Dubai,
plans to apply for a license for digital assets in Hong Kong. Also, OKX has
already opened an office in China’s self-administrative region. After just
one month Hong Kong legalized crypto, and OKX scooped up more than 10,000 new users.

Time Stamp:

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