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Customers Can Now Verify Kraken’s Bitcoin Reserves

Kraken customers can now independently verify that the bitcoin funds they hold on the cryptocurrency exchange are backed by actual assets after the company launched its Proof of Reserves feature, bringing a new level of transparency and accountability to the industry. originate. The feature is the product of an independent, cryptographic audit of Kraken’s funds, conducted by accounting firm Armanino LLP, which verified the amount of bitcoin the exchange holds on behalf of its clients with the help of Merkle Trees. auditor determined that Kraken controlled all bitcoin … belonging to customers on our exchange, as well as all bitcoin … held in our leading on-chain and off-chain staking services,” the company said in a statement from On Thursday, interested users in verifying that Kraken owns the amount of bitcoin that the company claims to hold on their behalf can do so by accessing Armanino’s independent Proof of Reserves website, but first they must go to Kraken’s website. to collect the necessary information, a unique identifier for their account, to access the records. Kraken adheres to strict standards of accountability and exceeds the transparency offered by legacy financial firms,” ​​per Kraken’s website. Proof of Reserves enables greater transparency by allowing customers to verify that their bitcoin custodian is truthful. However, the feature is not completely reliable as, strictly speaking, the user still has to trust the third-party company that performed the audit. But the initiative is still positive, as it prevents the cryptocurrency exchange from entering into fractional reserves, and it is also a better deal than what is offered by traditional banks, which not only have fractional reserves, but also have full confidence.
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