Kraken completes 2024 Proof of Reserves

Our latest Proof of Reserves covered the most widely held cryptocurrencies on the platform: BTC, ETH, SOL, USDC, USDT, and XRP. It included the spot positions, open margin positions, futures balances and on-chain staked amounts of eligible assets (ETH and SOL). In total, this most recent attestation – which became available on Kraken on November 1, 2024 – covered a value of over $21.5 billion of client assets.

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

Why does this matter?

Proof of Reserves includes an independent third party attestation to prove we back client account holdings with in-kind, fully reserved assets. Clients who held balances as of the snapshot date for the supported assets can personally verify their balances are backed with on-chain assets by logging in to their Kraken Pro account.  

Our 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

As with our previous Proof of Reserves, we used 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. 

As with our previous 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. 

We have continued to engage 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?

We encourage you to sign in to Kraken and self-verify that 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 September 30, 2024. 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. For a more comprehensive introduction to our Proof of Reserves process, check out our What is Proof of Reserves? A Beginner’s Guide blog post. If you have any further questions, please reach out to Kraken support.

These materials are for general information purposes only and are not investment advice or a recommendation or solicitation to buy, sell, stake, or hold any cryptoasset or to engage in any specific trading strategy. Kraken makes no representation or warranty of any kind, express or implied, as to the accuracy, completeness, timeliness, suitability or validity of any such information and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. Kraken does not and will not work to increase or decrease the price of any particular cryptoasset it makes available. Some crypto products and markets are unregulated, and you may not be protected by government compensation and/or regulatory protection schemes. The unpredictable nature of the cryptoasset markets can lead to loss of funds. Tax may be payable on any return and/or on any increase in the value of your cryptoassets and you should seek independent advice on your taxation position. Geographic restrictions may apply.

Staking is not available in the US and other geographic restrictions apply. Availability of margin trading services is subject to certain limitations and eligibility criteria. Trading using margin involves an element of risk and may not be suitable for everyone. Read Kraken’s Margin Disclosure Statement to learn more. Payward Digital Solutions Ltd. is licensed to conduct digital asset business by the Bermuda Monetary Authority. Trading futures, derivatives and other instruments using leverage involves an element of risk and may not be suitable for everyone. Read Kraken Derivatives’ risk disclosure to learn more.

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