Bitget, one of the largest crypto exchanges in the world, has announced the release of its proof of reserve using the Merkle Tree system. The announcement was made amidst uncertainties in the crypto space.
According to the Bitget team, the result of the update shows that all customers’ funds, including user balances across all products, including spot, futures, and Bother Earn, held by the exchange are designed on a 1:1 system. “We have funds to cover all of our customers’ assets and maintain additional reserves,” they added.
Bitget was established in 2018 and has become one of the world’s top five leading cryptocurrency exchanges, with over 8 million users in about 100 countries globally.
Proof of Reserve
Proof of Reserve is a concept that was created to help crypto-centralized exchanges be more transparent by sharing the funds and assets they have in their reserve. It helps users ascertain the true state of the exchange to prevent the spread of information.
The process of the collapse of the FTX exchange was one of the most important reasons behind the idea. The procedure involves using cryptographic proofs, checks of public wallet ownership, and recurring audits.
Using the Merkle Tree system, an exchange like Bitget stores details of users’ accounts on the system, which is on-chain, enabling users to verify it at any time and from anywhere.
Commenting on the development, Gracy Chen, Managing Director of Bitget, explained that Bitget has fulfilled a promise it made to its users to publish its Proof of Reserve in a short time.
She added that the increased interest of users for secured crypto platforms and the response of Bitget shows that they “will continue to advocate more initiatives aiming to offer safe adoption of cryptocurrency worldwide and a sustainable and trustworthy environment in the crypto universe.”
Users of Bitget can verify their assets here.