Elevating standards of trust and transparency for digital asset ecosystems
Proof of Reserves
The Proof of Reserves portal, hosted on TrustExplorer, is an Armanino owned and operated audit and assurance platform specifically for the digital asset industry.
The Proof of Reserves portal enables your users to cryptographically verify their account balances have been properly accounted for and collateralized on your platform. No technical expertise required by your users!
Open to Access
The Problem
Users often rely on centralized service providers, such as exchanges and custodians, to hold and store their digital assets. However, retail and enterprise owners of digital assets are not afforded the same levels of trust and transparency regarding the solvency of “bitcoin banks” (digital asset service providers) as they are when dealing with traditional financial institutions. The industry currently lacks the standards necessary to ensure digital asset service providers hold enough digital assets to cover customer deposits. Trust and transparency gaps result in lower rates of adoption, higher counterparty risks and a lack of maturation in the digital assets industry.
The Solution
Early bitcoin pioneers theorized the use of cryptographic proofs to enable exchanges and custodians to demonstrate to their customers that “their bitcoin is really there.” We have extended those theories, added additional methods and procedures, and brought proof of reserves to reality. By engaging a third-party crypto auditor to perform a proof of reserves review, exchanges and service providers can now offer assurance to users that the exchange has sufficient digital assets in custody to meet users’ liabilities, and also enable users to validate that their account data was included in the review.
The Value of Proving your Reserves
Proving your reserves helps build trust and provides transparency to your ecosystem. Ecosystem participants that benefit from this transparency include:
Users of Your Platform:
Give your users confidence that your exchange is fully collateralized with enough digital assets to cover all customer deposits.
Regulatory Bodies:
Ensure compliance with regulators while providing value to your ecosystem.
The Digital Asset Service Provider:
Confirm that you truly hold all of your assets.
Article: Proof of Reserves
Learn more about our approach here!
Gate.io is one of the oldest and most well-respected digital asset exchanges in the world. Operating since 2013, the exchange supports over 180 trading pairs, margin trading with leverage and a powerful trading engine. Armanino is proud to support Gate.io’s goals in providing trust and transparency to their platform’s users. Verify your Gate.io asset balance at TrustExplorer: Proof of Reserves.
DISCLAIMER: This communication is an overview only, and should not be construed as legal, investment or tax advice or advice to take any specific action. Individuals should consult with their personal tax / investment / legal advisors before making any tax / investment / legal-related decisions related to blockchain or cryptocurrency.
