Leading cryptocurrency exchange Kraken Thursday announced the results of a Proof of Reserve audit, which shows it holds more than $19 billion in Ethereum and Bitcoin.
Nearly $20 billion stored on Kraken:
According to the blog “KrakenThe audit was conducted by Armanino LLP, a US-based technology consulting firm.
The results did not include cryptocurrencies outside of Bitcoin and Ethereum.
The audit revealed that Kraken owns $3.5 billion worth of Ethereum staking.
This is the second independent audit conducted on the platform since 2014.
According to Armanino, the audit took several years of work to rebuild the Merkle tree (the Merkle tree is a mathematical data structure that encapsulates hashes of different blocks of data) and prove that each coin was there instantly.
The scrutiny comes as cryptocurrency companies face intense scrutiny from regulators around the world.
According to Jeremy Welch, Kraken’s chief product officer, the company plans to conduct public proof of reserve audits annually.
The same spokesperson added:
Security and transparency for our clients have been at the heart of our corporate culture, and the core of our practices and operations since the beginning.
Regular Proof of Reserve audits will make it clear that for Kraken, the safety and security of our customers is a top priority.
Kraken platform allows clients to check their accounts:
Kraken is now implementing audit criteria to allow clients to verify that their Bitcoin and Ethereum balances are backed by real assets held.
Any customer will be able to independently verify their balances by comparing specific pieces of data with the “Merckle” root.
But this will only reflect verification in the current state of the backed assets at the time of the review.
Noah Buxton, Head of Blockchain Division at Armanino, said:
We provide Proof of Reserve because we are passionate about this industry, and we believe it is the future of money markets.
Through this audit, we are taking historical best practices from certified public accounting firms and applying them in a very exciting new way.
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