We are proud to reaffirm our industry’s leadership in transparency with our latest Proof of Readiness (POR), completed as of March 31, 2025, including client holdings for BTC, ETH, SOL, USDC, USDT, XRP, and first time ADA. This rigorous verification process Make sure you have enough assets to fully back up your client’s balance. We don’t just ask you to trust us – we ask you to encrypt our custody of your encryption.
If you’re not used to POR, what is proof of a reserve? A guide blog post for beginners.
Our latest POR Bitcoin Reserve Results: 114.9% coverage
With the latest POR, we have confirmed that we are holding 192,091.25 BTC In our wallet, customers balance by total 167,188.68 BTC. This allows Reserve ratio of 114.9%meaning it holds nearly 15% Bitcoin than it owe it to users.
POR doesn’t just include spot holdings. It also includes margin positions, futures balances and even betting assets. This overall approach ensures that all kinds of customer exposures are considered. There are also other ways our POR methods continue to set industry standards.
What is POR?
POR is a cryptographic process that allows you to publicly demonstrate that cryptocurrency exchanges hold full user assets. Kraken uses a Markle Tree – Encrypted data structures that compile all user balances into a single root hash – Allow users to ensure that a specific balance is included without compromising personal privacy. The third party will confirm that the exchange’s on-chine holdings are at the total client balance or equal or greater than the same. This helps us to make sure we are not working with fractional reserves.
Not all poles are created equally
Many exchanges now offer what they call POR in one way or another, but our approach stands out in several important ways.
- Includes full responsibility
Not only does it showcase assets, it also discloses client liabilities. Many platforms omit this important half of the equation, which can give a misleading impression of solvency. - User-Level Verification Tool
Users can independently verify that their balance is included in the POR process via Merkle Tree Proofs. This additional transparency builds trust and accountability. - Consistent and continuous transparency
POR is not treated as a one-time PR exercise. After pioneering the process in 2014, we do it regularly to ensure consistent visibility into how users manage their platform’s funds.
Because “taking our words” is not enough
After some notable crypto exchange breakdowns, FTX-clients in particular need to demand transparency and accountability. POR provides a clear and verifiable way to prove that client assets are secure and fully described.
Our high reserve ratios and user-verified methodology provide a direct response to this need. It’s not just that funds are safe. Almost every exchange that has failed so far promises that clients’ funds are safe. It’s about proving it: encryption, independent, periodically.
More evidence, more frequently: Move to quarterly pocadence
Going forward, we are committed to releasing POR quarters along with previous financial results to provide even more frequent transparency. Additionally, we are working to expand the scope of our future poles to include a wider range of supported assets, further strengthening our commitment to accountability across the platform.
Since 2014, we have been the leader in setting and procuring POR standards for crypto holders seeking a reliable exchange of future prospects.
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