At Kraken, transparency is not a slogan. That’s standard. Our latest news Preliminary Proof (POR) AuditIt was completed at that point June 30, 2025Again, make sure that the client assets held on the platform are backed up to 1:1 or later. This process includes the main crypto assets BTC, ETH, SOL, USDC, USDT, XRP, ADA.

We don’t expect blind trust. We don’t need it. Provides evidence of encryption.

Is it your first time with POR? Learn how it works in a beginner’s guide.

The June 2025 report shows

Our POR Audit captures a complete snapshot of client assets across all services, not just spot balance. Included Margin accounts, futures holdings, and betting assetsIt provides a full spectrum view of customer exposure.

Reserve ratios as of June 30, 2025

A simple review – What is a proof of preparation?

Proof of reserves is a encryption process that allows the client to independently and personally verify that the assets are contained in a third-party audited snapshot of the platform’s liability.

Use a Markle Tree Combine individual balances into a single cryptographic hash. Client receives a Personalized Markle Proofcan be used to confirm inclusion without revealing personal details. An independent auditor then checks Kraken’s Onchain Holdings exceeds the total client balance – Effectively test your complete preparation without assumptions.

Why is Kraken’s POR going even further?

Nowadays, more exchanges offer some form of “pole” offering, but not all of them offer the same level of rigor or transparency. This is what sets us apart:

1. Consider not only assets but also liabilities

Some platforms show what they have, but skip what they owe. Included Client’s Total Debt With all audits. Below that is not complete evidence of reserves.

2. User-Level Verification

All clients can Check your own inclusion Use the open source Merkle Verification Tool. This is not just about trust, it is about verification.

3. Ten Year Consistency

First I developed POR 2014 – And we haven’t stopped. Kraken will implement for Regular and orderlyit’s not just the news cycle.

POR is essential. It’s not about promises. That’s about evidence – Visible, encryption, and proof of third-party verification. Kraken’s process is built to withstand scrutiny and provide information to users.

What’s next – Enlarge scope

We are committed to publishing Pors quarterin addition to our financial disclosures, we also ensure that users have a normal window in our platform solvency. We are also actively working to expand and include our pole coverage. More supported assetsgives us a broader view of the reserves throughout our ecosystem.

From the beginning, Kraken was a supporter. Accountability, Independence, Cryptographic Primary Values. I believe transparency should be an industry norm, not an afterthought. So we keep raising the bar.

Ready to verify your account? Please visit the spare proof portal.

Building and maintaining a high bar for security and compliance is fundamental to how you serve your clients’ needs. Today we are pleased to announce that Kraken facility grade qualified custody has successfully completed the SoC 2 Type 2 compliance test. This is an important milestone that further strengthens our long-standing commitment to protecting the assets and data of our institutional clients.

What is SOC 2 Type 2 and why it matters

SOC 2 (Systems and Organization Control 2) is an internationally recognized framework developed by the US CPAS Institute (AICPA) to manage customer data based on five “Principles of Trust Services,” security, availability, processing integrity, confidentiality and privacy.

Based on Kraken’s previous SOC 2 Type 1 report, successful SoC 2 Type 2 exams demonstrate not only the rigorous design of security management, but also the consistent execution and effectiveness over time. This independent third-party verification is based on existing security infrastructure and reflects its ongoing commitment to strengthening internal processes and technical infrastructure. These are stress-tested to meet the highest industry standards for system reliability and protection of sensitive data.

“Completing the SOC 2 Type 2 exam is an important milestone, but it is just one element of our comprehensive, security-first corporate culture and operational strategy.” “We consider security as a continuous and overall commitment that expands beyond a single audit, reporting requirement or certification. As Kraken continues to expand and the threat landscape evolves, we will remain laser-centric in investing in exceptional talent to strengthen our internal controls and support our commitment to protecting our clients’ data and their assets.”

What does this mean for our clients:

• Strengthening asset protection: SOC 2 Type 2 Compliance validates that Kraken’s institutional management platform assets are protected by robust, industry-leading security protocols and are continuously monitored and strengthened to combat evolving cybersecurity threats.

• Trust through transparency:This recognition allows clients to have more confidence in Kraken’s operational integrity. Reconfirm how security controls are not only well designed, but are also well-executed for long periods of time.

• Commitment to excellence: This achievement reflects Kraken’s ongoing investment in best-in-class security practices and infrastructure, reinforcing its mission to provide true security-first offerings that drive the wider adoption of digital assets globally.

Take a step forward

SOC 2 Type 2 Compliance is an important milestone, but it is just part of Kraken’s larger security-first philosophy. We are committed to continuing to strengthen our infrastructure, protocols, personnel and overall operations to ensure our clients’ needs both now and long term.

The witness’s commitments in one output of a Coinbase transaction include:
OP_RETURN commitment_prefix|witness_commitment

where commitment_prefix=0xaa21a9ed and
witness_commitment=sha256(sha256(witness_merkle_root|witness_reserved_value)).

witness_merkle_root The root of the Merkle tree, which includes all transactions, takes witness data into account. For Coinbase transactions, you cannot use the actual hash of the transaction due to recursive dependencies. To resolve using all 0:

                             sha256(sha256(E | F))
                                        │
                     ┌──────────────────┴───────────────────┐
                     │                                      │
        E = sha256(sha256(A | B))               F = sha256(sha256(C | D))
     ┌───────────────┴───────────────┐      ┌───────────────┴───────────────┐
     │                               │      │                               │
     A (CoinbaseTx)                  B      C                               D
  000...                         txid_2  txid_3                         txid_4

Why use a TX ID set for all 0s rather than ignoring Coinbase transactions and creating a Merkle route?