Merkle Tree Proof
of Reserves
Proof of reserves, secured by cryptographic verification.
Building Trust Through Transparent Asset Verification
Trust Reserve’s Merkle Tree Proof of Reserves ensures digital asset platforms can transparently verify sufficient assets to cover liabilities, using cryptographic methods to balance transparency and data protection.
Transparent Verification
Merkle Tree Structure
Individual Validation
Embeddable Widget
Trust Trough Technology
How it Works
1
Extract Customer Liability Report
2
Hash Customer Data
3
Create the Merkle Tree Structure
4
Publish the Merkle Tree & User Access Tools
5
Verify Customer Accounts
6
Publush Merkle Root in Report
Merkle Tree Generator
Easily generate a Merkle Tree in minutes, for up to millions of client’s customers, with our simple step-by-step process.
Customer Verification Portal
Enable your client’s customers to verify inclusion within the Proof of Reserves procedures.
Merkle Tree Information Delivery via Widget or API
With a simple line of code, embed the results via widget or APO to display Attestation Reports, the Merkle Tree Verification Hub, and summary information about the proof of Reserves.
Customizable and Embeddable Widgets for Delivery
Change the style, themes, and colours to match your clients website and brand.
Use Cases
TrustReserve has crafted a collection of offerings, featuring Proof of Reserves, tailored to meet the needs of various participants in the blockchain ecosystem.
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Cryptocurrency Exchanges
To provide transparency and assurance to their users by providing the existence and solvency of their reserves.
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Stablecoin Issuers
To demonstrate that their stablecoins are backed by sufficient reserves, enhancing trust and credibility.
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Asset-backed token issuers & RWA tokenisers
To validate the backing of their tokens with real-world assets, providing confidence to investors.
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Financial Institutions
To ensure compliance with regulatory requirements and enhance transparency in their asset management practices.
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Tokenised funds & Security Instruments
Proof of Reserves ensures tokenised funds and security instruments are transparently backed, enhancing investor confidence and regulatory compliance.
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Custodians
Proof of Reserves allows custodians to verify and demonstrate the integrity and security of their held digital assets, fostering trust among clients and regulators.
Explore our full range of toolkits
Merkle Tree Proof of Reserves
Real-Time Proof of Reserves
On-Chain Proof of Reserves
We empower customers in the digital asset revolution
Frequently Asked Questions
TrustReserve has crafted a collection of offerings, featuring Proof of Reserves, tailored to meet the needs of various participants in the blockchain ecosystem.
LedgerLens is a comprehensive platform designed for auditors and accountants, specifically to manage digital asset audits and attestation services. It offers tools for conducting Proof of Reserves, real-time attestations, and on-chain verification. By streamlining complex blockchain-related audit tasks, LedgerLens helps businesses and auditors verify digital assets, ensuring transparency and compliance with industry regulations. It supports functions like financial statement audits, compliance engagements, and digital asset attestations, providing a reliable framework for blockchain-based assurance and transparency.
TrustReserve’s Proof of Reserves, powered by LedgerLens™, is a web application accessible through an embeddable widget that displays information from Proof of Reserves attestation engagements.
This tool offers two key functions: (1) It allows users to verify that their account balance was included in a specific Proof of Reserves attestation, and (2) it provides access to download Agreed Upon Procedures reports for specific points in time.
The system is especially useful for management teams of digital asset platforms, offering a transparent way to share periodic attestation reports with customers. These reports cover two main areas: (1) total user account balances for in-scope tokens (on-platform liabilities) and (2) the digital assets held as reserves to meet customer obligations.
Independent auditors conduct these engagements to verify the specific customer liabilities and the corresponding digital assets held in reserve. It’s important to note that these reports do not cover other liabilities or assets of the company and are not intended to replace financial statement audits. Instead, they provide supplementary information and do not assess a company’s overall financial condition or solvency.
A Merkle Tree is a cryptographic technique used to efficiently summarise large datasets into a single hash known as the Merkle Root. This Merkle Root functions like a cryptographic fingerprint, encapsulating all the input data. The structure of Merkle Trees also allows for efficient verification of specific data elements within a large dataset.
This feature is particularly useful in our Proof of Reserves assessments, where we use these properties of Merkle Trees to verify and confirm the inclusion of individual user accounts in the Proof of Reserves Attestation Report. Merkle Trees are integral to the functioning of major blockchain protocols such as Bitcoin and Ethereum, where they provide a unique cryptographic hash for every block of transactions.
In our Proof of Reserves, we employ a similar approach to generate a unique hash for all user accounts in a trading platform’s database. Additionally, Merkle Trees give users the ability to verify the specific contents that were included within a particular set of “sealed” data. This process ensures the integrity and verifiability of the data, bolstering trust and transparency in digital transactions.
On-Chain Proof of Reserves brings off-chain reserves data such as bank balances, gold troy ounces held in vaults, treasury bond CUSIPs & maturity dates, real estate appraisals, and more onto blockchains through the Chainlink oracle network for use in smart contracts.
Real-Time Attestations are system-generated CPA/CA certifications. The system compiles, analyzes, and automatically reports information based on the auditor’s requirements and inputs.
Trust isn’t enough. Despite advancements in blockchain and cryptography, transparency gaps persist in digital assets. Auditors and Proof of Reserves bridge these gaps.
As digital finance evolves, traditional auditing is falling behind. Proof of Reserves offers auditors a chance to stay relevant, expand their services, and maintain their role as trusted gatekeepers in an increasingly on-chain world.
