Bitget, a cryptocurrency exchange, has announced that its total proof-of-reserve ratio has reached 223%. The exchange disclosed that it holds $1.44 billion in reserves across 31 different cryptocurrencies. The reserve ratios for specific assets in include Bitcoin at 454%, Tether at 135%, Ether at 171%, and USDC at 2,604%.
Bitget executives emphasized that the exchange operates without relying on debt or user funds for trading and investment activities. They expressed pride in being a debt-free company and stated that they have no outstanding debts or liabilities. Additionally, Bitget clarified that the high collateral of Certain tokens come from trading fees profits and returns from investments and acquisitions.
While the exchange does not provide external insurance, it maintains a user protection fund worth $300 million. Bitget claims that this fund, which functions better than third-party insurance, allows them to efficiently safeguard users' assets without depending on external bureaucracy or policy changes . The company intends to strengthen its partnerships with third-party auditors to conduct inspections of its assets and reserves, even though it is not currently a regulatory requirement. Bitget updates its Proof of Reserves on a monthly basis.
However, experts have cautioned that proof-of-reserve ratios may not provide a complete picture of an exchange's financial health. Syracuse University law professor Jack Graves pointed out the limitation of solely auditing an exchange's on-chain assets, as it does not reveal how much is pledged as collateral. Without access to an exchange's financial services and records, determining the full extent of their holdings can be challenging.
