Crypto Exchange Transparency and Trustworthiness in 2025: HTX's 35-Month Merkle Tree Reserve Proof as a Benchmark for Industry Security and Asset Safety

In the wake of the 2022 FTX collapse, transparency has become a non-negotiable standard for cryptocurrency exchanges. Centralized platforms now face relentless scrutiny from users, regulators, and industry experts, all demanding verifiable proof that user assets are secure. Among the leading contenders in this new era of accountability, HTX has emerged as a standout example. By implementing a 35-month Merkle Tree-based Proof of Reserves (PoR) system, the exchange has not only demonstrated its commitment to asset safety but also set a benchmark for the industry. This analysis explores how HTX’s cryptographic transparency measures, third-party validations, and reserve ratios position it as a model for trust in 2025.

The Merkle Tree PoR: A Technical Leap for Trust

HTX’s Merkle Tree PoR system, first introduced in late 2022, allows users to cryptographically verify that their balances are fully backed by the exchange’s reserves. This method aggregates individual account balances into a single cryptographic proof using Merkle trees, enabling users to confirm their holdings without exposing sensitive data [1]. By 2025, HTX had enhanced this system with zero-knowledge proof (ZKP) technology, further bolstering privacy while maintaining transparency [2].

The exchange’s 35-month streak of publicly disclosing reserve proofs—beginning in late 2022—has been a cornerstone of its credibility. As of September 2025, HTX reported reserve ratios exceeding 100% for major assets like BTC (101%), ETH (100%), and USDT (102%), with platform reserves for USDT alone surpassing $1.82 billion [3]. These figures are not just numbers; they represent a sustained commitment to asset redundancy, ensuring users can withdraw funds even during periods of high volatility or liquidity stress.

Third-Party Audits and Public Accountability

Transparency is meaningless without independent validation. HTX has addressed this by voluntarily undergoing third-party audits from firms like Mazars Group and Hacken, which verify the accuracy of its Merkle Tree data and confirm that reserves cover all liabilities, including margin accounts and staked assets [4]. Additionally, the exchange has made its wallet addresses public, allowing anyone to cross-check on-chain holdings against disclosed reserves [5].

This multi-layered approach has earned HTX recognition in industry rankings. According to Kaiko’s Q2 2025 Global Spot Exchange Ranking, HTX rose to 8th place globally, praised for its “robust transparency measures” and the May 2025 Merkle Tree PoR audit, which confirmed a 73% surge in USDT holdings in April followed by over 30% growth in May [6]. Such validations are critical in an industry where trust is often eroded by opaque practices.

Benchmarking HTX Against Industry Standards

HTX’s efforts are not isolated. Competitors like Kraken, Binance, and Coinbase have also adopted PoR systems, but few match HTX’s consistency and technical rigor. For instance, CoinEx maintains a 100% reserve policy, while Bitget and BTCC have reported reserve ratios as high as 188% and 141%, respectively, in August 2025 [7]. However, these exchanges lack HTX’s 35-month unbroken record of public disclosures or its integration of ZKP for privacy.

Moreover, HTX’s use of TiDB distributed storage architecture—a move announced in 2025—has improved data processing efficiency and traceability, addressing scalability concerns that plague older PoR systems [8]. This innovation underscores HTX’s role as a technological leader in the transparency space.

The Business Case for Transparency

Transparency is no longer just a compliance checkbox; it is a competitive advantage. HTX’s market share in Q2 2025 grew by 1% year-over-year, outperforming peers like Binance (which saw a decline from 39.8% to 37%) and Coinbase (which fell to 5.8% from 7.0%) [9]. This growth reflects user demand for platforms that prioritize security and accountability.

Investors should also note the broader implications. As regulatory pressures mount—particularly in the U.S. and EU—exchanges with robust PoR systems will likely face fewer compliance hurdles. HTX’s proactive approach positions it to thrive in a future where transparency is a regulatory requirement rather than a voluntary practice.

Conclusion: A New Era of Trust

HTX’s 35-month Merkle Tree Reserve Proof is more than a technical achievement—it is a blueprint for the future of crypto exchange transparency. By combining cryptographic verification, third-party audits, and public accountability, the exchange has redefined what it means to be “trustworthy” in an industry still recovering from past scandals. For investors, HTX’s model offers a compelling case study in how innovation and accountability can coexist, driving both user confidence and long-term sustainability.

As the industry evolves, HTX’s approach will likely become a standard rather than an exception. In 2025, transparency is no longer optional—it is the foundation of trust, and HTX has shown how to build it.

Source:
[1] HTX Launches ZK-Based Proof of Reserves for..., [https://mirror.xyz/0x20D8b1F70bE459c492490daa8eAaD72843CfC1E0/SvhPBvj3StnGaDcjBimmsBJHjNaB-Uw-ISOBJaXyi4Y]
[2] HTX 2024 Recap & 2025 Outlook: Embracing Global..., [https://square.htx.com/htx-2024-recap-2025-outlook/]
[3] Huobi HTX Updates September Merkle Tree Reserve Proof..., [https://www.panewslab.com/en/articles/99f3d84b-c04f-4c2c-87e4-f29984b7fa53]
[4] Proof of Reserves (PoR) Audit, [https://hacken.io/hacken-news/announcing-hackens-new-service-proof-of-reserves-por-audit/]
[5] HTX's 2025 Mid-Year Report Showcases Robust Growth..., [https://www.prnewswire.com/news-releases/htxs-2025-mid-year-report-showcases-robust-growth-evidenced-by-50-million-users-6-4-billion-assets-and-hot-cryptos-850-surge-302507995.html]
[6] HTX Jumps Two Spots to #8 in Kaiko's Q2 Exchange Ranking..., [https://www.prnewswire.com/in/news-releases/htx-jumps-two-spots-to-8-in-kaikos-q2-exchange-ranking-302474173.html]
[7] Bitget Releases August 2025 Proof of Reserves..., [https://www.news10.com/business/press-releases/globenewswire/1001124623/bitget-releases-august-2025-proof-of-reserves-maintaining-188-reserve-ratio]
[8] HTX 2024 Recap & 2025 Outlook: Embracing Global..., [https://square.htx.com/htx-2024-recap-2025-outlook/]
[9] Crypto Exchange Statistics 2025: Top Metrics Unveiled..., [https://coinlaw.io/crypto-exchange-statistics/]