Kraken is thrilled to share the results of our second 2022 Proof of Reserves audit, which has been expanded to include:

• BTC*
• ETH*
• USDT
• USDC
• XRP
• ADA*
• DOT*

Note: * Indicates Proof of Reserves audit covered assets held both on Kraken’s spot exchange and staking platform

A Proof of Reserve audit is a trail-blazing accounting procedure that cryptographically verifies cryptocurrency holdings and account balances. The results of our most recent audit were once again verified by top-25 global accounting firm, Armanino LLP.  

The audit determined Kraken securely held all of the above assets belonging to clients on our exchange, as well as held in our industry-leading on-chain and off-chain staking services.

 

 

But don’t just take our word for it. We have always focused on security and our latest Proof of Reserves audit enables clients who held these assets on the exchange to independently verify their Kraken balances are indeed backed by real assets secured by our global exchange.

 

 

In our February 2022 Proof of Reserves audit, Kraken led the industry by verifying the balance of our clients’ BTC and ETH holdings. The addition of five more leading cryptocurrencies expands the verification of our client balance coverage to 63% of the total assets held on Kraken. We plan to continue including additional assets in our future Proof of Reserves audits. 

At Kraken, the security of your funds has, and always will be, our number one objective. Our regular Proof of Reserves audits demonstrate Kraken’s ability to pioneer a higher standard for accountability and transparency — not just in crypto, but in the broader banking and financial space, too.

In order to ensure our Proof of Reserves audit has its largest possible impact, we are inviting you to participate. By giving you the tools to verify your balances, we encourage you to not just trust us, but independently verify the results of the audit:

1. Sign in to your Kraken account
2. Follow this simple 3-step process to generate a “Record ID” or “Merkle Leaf” specific to your Kraken account and this audit
3. Enter this “Record ID” on the website of our auditor, Armanino LLP

By following the process above, you’ll affirm your cryptocurrencies were held securely by Kraken at the time of the audit.

If you don’t see a Record ID or Merkle Leaf in your Kraken account, don’t worry. This means you did not have these assets on Kraken at the time of our audit. You’ll be able to verify your account balances in future audits.

Looking ahead, we encourage all clients to verify the results of our audits. If you encounter trouble with our new tools, contact our 24/7 support team for help. 

If you’d like to learn more about Proof of Reserves and the groundbreaking ways it leverages the transparency of public blockchains, we invite you to learn more on our website.

As the crypto industry’s transparency leader, Kraken continues to raise the bar and set the blockchain-powered standard for accountability to our clients. Our Proof of Reserve audits offer a standard not only unmatched in crypto, but unmatchable by traditional finance.

 

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These materials are for general information purposes only and are not investment advice or a recommendation or solicitation to buy, sell, or hold any digital asset or to engage in any specific trading strategy. 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 crypto assets and you should seek independent advice on your taxation position.

There are no formally accepted rules or procedures that define a proof of reserves audit. For ours, we engaged  an independent accounting firm to perform an engagement under standards set forth by the American Institute for Certified Public Accountants and to issue an Independent Accountant’s Report on Agreed Upon Procedures. These reports include specific procedures performed by that firm as well as their findings.