Bitget, a cryptocurrency exchange, has announced that its total proof-of-reserve ratio has reached 223%. In a July 13 statement, the exchange disclosed that it holds a total of $1.44 billion in reserves, distributed among 31 different cryptocurrencies. Notably, The reserve ratios for Bitcoin, Tether, Ether, and USDC stand at 454%, 135%, 171%, and 2,604%, respectively.
Bitget emphasized that it operates without relying on debt or user funds for trading or investing. The exchange prides itself on being debt-free and stated that it has no outstanding debts or liabilities, nor is it listed as a creditor of any recently bankrupt companies.
To explain the high collateral of certain tokens, Bitget executives clarified that the funds come from trading fees and returns from investments and acquisitions. The exchange does not offer external insurance but operates a $300 million user protection fund. According to the execution ives, this fund functions more efficiently than third-party insurance, as it allows them to safeguard users' assets without relying on external bureaucracy or policy changes.
While proof-of-reserve is not currently a regulatory requirement, Bitget aims to enhance its partnerships with third-party auditors to conduct inspections of its assets and reserves. The exchange provides monthly updates on its Proof of Reserves.
Experts have cautioned about the effectiveness of proof-of-reserve, despite its popularity following the collapse of cryptocurrency exchange FTX. Syracuse University law professor Jack Graves has highlighted the challenge of determining how much of an exchange's assets are pledged as collateral without access to their financial services, books, and records.
