Proof of Reserves
Our Proof of Reserves tools, built on the globally recognised LedgerLens technology, is setting the standard for trust and transparency across the cryptocurrency ecosystem.
About
Proof of Reserves is a process where an exchange, custodian, token issuer or crypto fund verifies that their cryptocurrency holdings exceed customer liabilities.
Proof of Reserves Portal
A secure gateway to transparency and trust.
Validate account balances, verify collateralisation and build confidence in your digital asset platform.
Innovative Application
Empower your users with cryptographic verification.
Ensure accurate account balances and access detailed attestation reports for enhanced transparency.
Assets
in Custody
- Real-world Assets
- Flat Currencies
- Crypto Assets
Liabilities
to Customers
- On-Platform Balances
- Stablecoins & Asset-Backed Tokens
- Exchange Traded Notes
Across Issuers, the Assets in Custody and the Liabilities to Customers differ:
Issuer
Assets
Liabilities
Stablecoin
Fiat & Treasuries held in Banks
Tokens Issued on a Blockchain
Exchange
Digital Assets held in Custody
Customer Liabilities as Tracked on the Exchange’s Database
Crypto ETF
Crypto held in Custody
ETF Shares Issued and Outstanding
Our Proof of Reserves Toolkits
Merkle Tree Proof of Reserves
Real-Time Proof of Reserves
On-Chain Proof of Reserves
Different Toolkits for Different Use Cases
Auditor
Toolkit
- Merkle Tree Proof of Reserves
Proof of reserve
use case
- Exchanges
- Custodians
- Trading Platforms
Defining
characteristic
- Periodic Attestation Reporting with Merkle Tree for Customer Verification
Auditor
Toolkit
- Real-Time Proof of Reserves
Proof of reserve
use case
- Stablecoins
- Asset-backed Tokens
- ETFs
Defining
characteristic
- Auditor Attestations as Frequent as Every 30 Seconds
Auditor
Toolkit
- On-Chain Proof of Reserves
Proof of reserve
use case
- Stablecoins
- Asset-backed Token
Defining
characteristic
- Off-Chain Data Published On-Chain via Chainlink
Value
TrustReserve’s Proof of Reserves provides digital asset platforms with a competitive edge by building trust and transparency among users.
Integrations
Ledgerlens integrates with all blockchains and tokens for point-in-time balance verification and ownership testing. Whether managing a focused or diverse portfolio, our platform ensures flexibility, compliance, and trust, setting the global standard for transparency.
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.
-
Cryptocurrency Exchanges
To provide transparency and assurance to their users by providing the existence and solvency of their reserves.
-
Stablecoin Issuers
To demonstrate that their stablecoins are backed by sufficient reserves, enhancing trust and credibility.
-
Asset-backed token issuers & RWA tokenisers
To validate the backing of their tokens with real-world assets, providing confidence to investors.
-
Financial Institutions
To ensure compliance with regulatory requirements and enhance transparency in their asset management practices.
-
Tokenised funds & Security Instruments
Proof of Reserves ensures tokenised funds and security instruments are transparently backed, enhancing investor confidence and regulatory compliance.
-
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.
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.
