Our latest proof of reserves covered the most widely held cryptocurrencies on the platform: BTC, ETH, SOL, USDC, USDT and XRP. It included spot positions, open margin positions, forward balances, and on-chain amounts of eligible assets (ETH and SOL). In total, this most recent attestation – which became available on Kraken on November 1, 2024 – covered a value of more than $21.5 billion in customer assets.
We pioneered the proof of reserves process in 2014 and have committed to implementing it regularly since January 2022.
Why is this important?
Proof of Reserves includes certification from an independent third party that we support customer account holdings with fully reserved in-kind assets. Customers who held balances as of the snapshot date for supported assets can personally verify that their balances are backed by on-chain assets by logging into their Kraken Pro account.
Our proof of reserves includes the following:
- The sum total of all customer liabilities (or balances)
- A way for customers to cryptographically verify that their account details and individual balances have been included in the total sum.
- Third-party attestation that verified that Kraken has full control over on-chain assets beyond these liabilities
As with our previous proof of reserves, we used a Merkle tree to represent individual account balances identifiable by a unique, encrypted hash (a string of characters). We then successively hash these records until a single Merkle root hash represents the sum total of covered customer balances. This means that account balances can be easily verified as included in the proof of reserves without having to expose the underlying unencrypted data set.
As with our previous proof of reserves, customers can now download the full path in the Merkle tree, from their account all the way to the root. They can review its construction, better understand how Kraken’s proof of reserves process works, and personally verify the value and validity of the root hash included in the report.
We continued to use The Network Firm, a registered CPA firm specializing in accounting and attestation services for crypto businesses, to attest to the fact that we had full control over the wallets containing client balances.
How can I find out more?
We encourage you to log into Kraken and verify for yourself that your balances have been included in this review. Please keep in mind that this proof of reserves only covers assets that were on the platform as of September 30, 2024. Assets held on the platform before or since this date are not included in this report.
For a detailed overview, please see The Network Firm’s full report accessible via the verification portal. For a more comprehensive introduction to our Proof of Reserves process, see our What is Proof of Reserves? Beginner’s Guide blog post. If you have further questions, please contact Kraken Support.
These materials are intended for general information purposes only and do not constitute investment advice or a recommendation or solicitation to buy, sell, stake or hold any crypto-asset or to engage in any trading strategy. specific trading. Kraken makes no representations or warranties of any kind, express or implied, as to the accuracy, completeness, timeliness, suitability or validity of this information and shall not be liable for any errors, omissions or delays. in this information or for any loss, injury or damage resulting from its display or use. Kraken does not and will not endeavor to increase or decrease the price of any particular cryptoasset it makes available. Some crypto products and markets are unregulated and you may not be protected by government compensation and/or regulatory protection programs. The unpredictable nature of crypto-asset markets can result in losses of funds. Tax may be payable on any returns and/or increases in the value of your cryptoassets and you should seek independent advice on your tax situation. Geographic restrictions may apply.
Staking is not available in the United States and other geographic restrictions apply. The availability of margin trading services is subject to certain limitations and eligibility criteria. Margin trading carries an element of risk and may not be suitable for everyone. Read Kraken Margin Disclosure Statement to find out more. Payward Digital Solutions Ltd. is licensed to carry out digital asset business with the Bermuda Monetary Authority. Trading futures, derivatives and other instruments using leverage involves an element of risk and may not be suitable for everyone. Read Kraken Derivatives Risk Disclosure to find out more.
