Proof of Reserves
Security
Attestation that a custodian holds assets it claims.
Proof of reserves shows that a custodian holds the assets it claims. It often uses Merkle proofs and auditor attestations. It is useful, but it should be paired with proof of liabilities for a fuller picture.
Frequently asked questions
How does proof of reserves work?
A custodian publishes holdings and allows users to verify inclusion without revealing account details, often via Merkle proofs.Is proof of reserves enough?
It helps but may miss liabilities. Look for proof of liabilities or full audits where possible.How do I verify my account was included?
Use the tool provided to check your record in the Merkle tree and confirm the auditor signature if present.