Kraken successfully passes November 2023 Proof of Reserves

This most recent Proof of Reserves covered the most widely held cryptocurrencies: BTC, ETH, USDC, USDT, DOT, ADA and XRP. It also included the open margin positions, futures balances and on-chain staked amounts of those assets. In total, approximately 78% of all clients’ cryptoassets held on the platform were covered by this most recent attestation. 

We pioneered the Proof of Reserves process in 2014 and have committed to undertaking it regularly since January 2022. 

Why this matters

Proof of Reserves is still a relatively new process; it has no universally accepted definition or requirements. At Kraken, Proof of Reserves includes an independent third party attestation to prove we back your account holdings with in-kind, fully reserved assets. 

As with our previous Proof of Reserves, we use a Merkle Tree to represent individual account balances identifiable by an encrypted, unique hash (a string of characters). We then successively hash these records until a single Merkle root hash represents the sum total of client balances covered. This means account balances can be easily verified as included in the Proof of Reserves without having to expose the underlying, unencrypted data set. 

In this Proof of Reserves, clients can now download the full path within the Merkle Tree, from their account to the root. They can review its construction, gain a better understanding of how Kraken’s Proof of Reserves process works and personally verify the value and validity of the root hash included in the report. 

Kraken’s Proof of Reserves includes the following:

• The total sum of all client liabilities (or balances)
• A means for clients to cryptographically verify that their account details and individual balances were included in the total sum
• Attestation from a third party who has verified Kraken has full control over on-chain assets in excess of these liabilities

We engaged The Network Firm, a registered CPA firm specializing in accounting and attestation services for crypto businesses, to attest to the fact that we had full control over the wallets holding client balances. 

How do I find out more?

If you haven’t already, we encourage you to log in to Kraken and self-verify your balances were included in this review. Please bear in mind that this Proof of Reserves only covers assets that were on the platform on November 30, 2023. Any assets held on the platform before or since that date are not included in this report. 
For a detailed runthrough, please check out The Network Firm’s full report accessible via the verification portal. You can also check out our Proof of Reserves support page here. If you have any further questions, please reach out to Kraken support.