ByBit has joined the ranks of major cryptocurrency exchanges like BINANCE in making its proof of reserves available to the public.
The Dubai-based platform announced the launch of a Merkle Tree-Based Proof-of-Reserve System that will allow users to verify their assets as well as Bybit’s holdings.
According to Bybit, the new feature will also enable verification of the ownership of the exchange’s wallet and the 1:1 asset holding ratio.
“With the release of the Merkle Tree, Bybit has further demonstrated its robust finances and commitment to full transparency. Users can use their Merkle Leaf code to check that their assets are recorded as liabilities in Bybit’s reserves. They can also verify Bybit’s ownership of the wallets and check that assets are held in a 1:1 ratio”
The action was taken almost a month after Bybit publicly disclosed the addresses of its biggest cryptocurrency wallet amid the upheaval brought on by FTX’s demise and calls for greater transparency within the industry.
The wallets had then indicated that more than $1 billion of the exchange’s assets are in Bitcoin, Tether, Ethereum, and USDC, according to the Dashboard that Nansen published.
Over 85% of Bybit’s reserves are made up of these five blue-chip investments, and stablecoins account for more than 50% of the total. One of the first exchanges to publish its proof of reserves was Binance, which stated that it had net Bitcoin assets worth 582,485 BTC.
Mazars Veritas auditing service confirmed the figure, stating that as of November 22nd, Binance’s BTC was 101% collateralized.
