What is Proof of Reserves (PoR) and why is it important?

Proof of Reserves is an independent audit that verifies whether a custodian’s on-chain holdings match their user liabilities. It’s a key measure of transparency and trust, ensuring that platforms are fully backed and not at risk of insolvency. This is crucial for maintaining confidence among users, stakeholders, and regulators in the Web3 space.

What types of platforms need a PoR audit?

Proof of Reserves is essential for centralized exchanges (CEXs), decentralized finance (DeFi) protocols, liquid staking platforms, tokenized asset platforms, and any Web3 projects that hold custodial assets. It’s an important tool for demonstrating solvency and transparency.

How does Hacken’s PoR audit process work?

Hacken’s PoR audit begins with a detailed evaluation of your platform’s assets and liabilities. Using advanced cryptographic methods like the Merkle Tree, we verify your holdings and compare them against user balances. After thorough review and testing, we provide a detailed audit report outlining the results and any recommended improvements.

How long does a PoR audit take to complete?

A typical Proof of Reserves audit can be completed within 2–3 weeks, depending on the complexity of your platform and the size of the assets being verified. We work closely with you to ensure timely delivery while maintaining the highest level of accuracy.

Will my users’ data remain private during the PoR audit?

Yes, user privacy is a top priority. Hacken employs advanced cryptographic techniques, such as Merkle Trees, to safeguard sensitive data while ensuring transparency in the audit process. We verify liabilities and reserves without exposing personal information.

What’s the difference between real-time verification and on-demand proof generation?

Hacken offers on-demand proof generation, meaning your platform can generate a PoR at any time. While this offers flexibility for exchanges, users verify their assets based on the most recent proof generated, not in real-time. This ensures that the data is up-to-date as per the last proof created by the exchange.

How often should my platform generate a Proof of Reserves?

The frequency of PoR generation is at the discretion of the platform. Some choose to conduct PoR audits quarterly, while others may do so monthly or even more frequently, depending on their user base and regulatory demands. Hacken’s on-demand system allows you to generate proofs as often as necessary to maintain transparency.

Proof of Reserves Audit

Proof of Reserves (PoR) is an independent audit by Hacken that verifies whether custodians’ on-chain assets fully cover user liabilities. As the demand for transparency in Web3 grows, our PoR audits help Web3 platforms strengthen confidence among users, stakeholders, and regulators.

years of pioneering
PoR transparency

10+

Proof of Reserves
audits conducted

20+

leading crypto
exchanges secured

$25B+

in verified assets
across audits

Keep up with crypto regulation for transparency and consumer protection

Regulators worldwide are introducing standards targeting the crypto industry.

Hacken’s Proof of Reserves provides a proactive solution to meet legal requirements, helping you reinforce trust, enhance resilience, and stay aligned with today’s compliance frameworks.

MiCA (EU)

“Maintain a reserve of assets covering the liabilities towards token holders.”

VARA (UAE)

“Demonstrate assets held in reserve cover all liabilities with respect to Client VAs.”

MAS (Singapore)

“Provide comprehensive disclosures, including audit results of reserve assets.”

Powering transparency for leading crypto exchanges and platforms

Go to PoR Validation

Benefits of Proof of Reserves by Hacken

Full transparency, zero compromise

Get real-time solvency verification for your exchange, DeFi protocol, liquid staking platform, or tokenized assets, all while safeguarding user privacy with advanced cryptographic methods like Merkle Trees.

Tailored solutions for every platform

Hacken’s PoR audits are fully customizable to meet the specific needs of exchanges, DeFi protocols, tokenized assets, and liquid staking platforms, ensuring thorough and accurate audits.

On-demand verification

Generate proofs of solvency at any time with Hacken’s flexible PoR solution, empowering your platform to stay ahead with timely updates that users and stakeholders trust.

Industry-leading trust

Trusted by Gate.io, Crypto.com, and Bit2Me, Hacken’s PoR audits help you build credibility, strengthen trust, and stay ahead of competitors.

Hear from our clients

"We’re grateful for Hacken’s thorough and diligent security review, leaving no stone unturned. Ensuring the integrity of our PoR is a commitment not only to user asset safety but also to the entire blockchain industry. Hacken plays an important role in fortifying this commitment and ensuring we continually set the bar high."

Dr. Lin Han,

Founder and CEO, Gate.io

"Hacken’s work to analyze our recent Proof of Reserves update is a great example of the power of community feedback."

Binance

"We highly recommend Hacken to anyone in need of Web3 security services and a reliable partner for their blockchain initiatives. Their team’s professionalism and expertise in the security space have helped us to secure an ecosystem for our users."

Isha Tyagi

Technical Program Manager, Near

"Hacken founders inherited quality, professionalism, and integrity from Deloitte, their ex-employer."

Sunny Lu

CEO, Vechain

Our Proof of Reserves methodology

Since pioneering PoR audits in 2019, Hacken has conducted numerous audits for industry leaders such as Gate.io, Crypto.com, and Bybit.

Our proven PoR methodology ensures complete transparency by validating on-chain assets against user liabilities, providing exchanges with the tools to build user trust and ensure solvency.

Initial stage

We evaluate the audit scope, timeline, and costs based on your project’s documentation to set clear expectations from the start.

Thorough preparation

Our expert team uses cutting-edge cryptographic tools like Merkle Trees to verify your assets and liabilities, ensuring transparency at every step.

Detailed review

We meticulously compare your platform’s assets against liabilities, ensuring every reserve is fully accounted for and accurately represented.

Clear reporting

Receive a detailed, easy-to-understand audit report that provides a transparent snapshot of your platform’s financial health, along with actionable insights for continuous improvement.

On-demand verification

With Hacken’s PoR service, you can generate on-demand proofs at any time, giving your users confidence and peace of mind about your platform’s solvency.

Build trust and ensure transparency for your Web3 project with our proven PoR methodology and on-demand validation

Exchanges

Demonstrate full asset backing and solvency to users and regulators by verifying that on-chain holdings match user balances, ensuring financial transparency.

Tokenized Assets

Bridge the gap between off-chain real-world assets and their digital representations with verifiable audits that enhance trust and regulatory compliance.

Liquid Staking Platforms

Ensure the integrity of staked assets, prevent double-counting, and verify validator set security for a transparent staking process.

DeFi Protocols

Validate asset holdings across interconnected systems, ensuring composability and managing risks like flash loans while maintaining transparency for users.

Industry leaders rely on Hacken for their Web3 security

Hacken

Binance

Feb 17, 2023

Binance Enhances Its Proof of Reserves Security Following Hacken’s Discovery

Hacken

WhiteBIT

Mar 20, 2023

Europe’s Top CEX–WhiteBIT–Trusts Hacken For Security

Hacken

Gate.io

Jan 31, 2024 / Upd: Feb 5, 2024

Gate.io’s Proof of Reserves Security Assessment

Hacken’s record of excellence

Shaping industry transparency

We began pioneering PoR audits in 2019, well before they became an industry necessity. Hacken’s Merkle Tree & Verifier Tool ensures that on-chain assets fully match user liabilities.

Proven expertise

Since 2017, Hacken has expanded beyond smart contract audits, completing numerous PoR audits for leading industry projects, like Gate.io, Crypto.com, Bybit, among others.

Certified professionals

Our team of over 120 experts, including 60+ engineers, is certified in leading security standards like CCSSA, OSCP, and CISSP, providing the highest level of expertise and precision in our audits.

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Proof of Reserves Audit

Keep up with crypto regulation for transparency and consumer protection