ByBit Launches Merkle Tree-Verified Proof of Reserves

ByBit has joined the ranks of major crypto exchanges such as Binance to publicly provide its proof of reserves. 

The Dubai-based platform announced the launch of a Merkle Tree-based proof-of-reserve system to enable users to verify their assets deposited into the exchange as well as Bybit’s holdings.

• The verification is available in both trading and funding accounts.
• Bybit said that the new feature will also allow verification of the exchange’s wallet ownership and that assets are held with a 1:1 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 move comes almost a month after Bybit publicly released the addresses of its largest crypto wallet amidst the upheaval caused by FTX’s collapse and calls within the industry for greater transparency.
• As per the Dashboard published by Nansen, the wallets had then indicated that more than $1 billion of the exchange’s assets are in Bitcoin, Tether, Ethereum, and USDC.
• The five blue-chip assets account for over 85% of Bybit reserves, and it holds over 50% of the total in stablecoins.
• Binance was among the first exchanges to release its proof of reserves, reporting net Bitcoin assets of 582,485 BTC.
• The figure was verified by Mazars Veriitas auditing service, which said that Binance’s BTC was 101% collateralized as of November 22nd.