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Bybit extends proof-of-reserves to include 32 digital assets

Press Releases Crypto News CryptoSlate Bybit extends proof-of-reserves to include 32 digital assets

Dubai-based Bybit, the world’s third-largest crypto exchange by volume, set a new benchmark in the cryptocurrency market with its latest proof-of-reserves (PoR) attestation, which has been expanded to cover 32 cryptocurrencies, according to a Dec. 20 press release.

The report aims to show customers that Bybit has fully backed all their assets within its sophisticated multi-tier wallet system. The collateralization of the tokens ranged from 100-124%, based on the report.

Proof of reserves

Bybit’s proof-of-reserves shows that the company holds 100% to 124% collaterization on the 32 tokens in the report. The exchange’s BTC collateral stood at 107%, and its ETH collateral stood at 119%.

The exchange’s commitment to asset security and transparency was underscored by top industry ratings, including a perfect score from CoinGecko and an ‘AA’ rating in the 2023 CCData Crypto Exchange Benchmark Report.

Bybit’s innovative wallet system, which includes cold, warm, and hot wallets, along with collaborations with leading custodians like Fireblocks and Copper, reinforces the security and accessibility of user funds.

In the broader crypto exchange industry, PoR has become part of the trust factor. Major exchanges like Binance, Coinbase, and Kraken have adopted PoR practices, each with its own methodology. These practices served a shared goal: ensuring that customer assets were secure and fully backed.

Regulatory concerns around PoR

While PoR reports are seen as a step towards transparency, regulators have cautioned about cryptocurrency businesses relying too heavily on them.

The Public Company Accounting Oversight Board (PCAOB), operating under the jurisdiction of the U.S. SEC, has specifically warned investors against placing too much trust in these reports. The PCAOB emphasize

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Author: Assad Jafri

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