Kraken's Proof of Reserves Shows 114.9% Bitcoin Reserve Ratio

Kraken, a prominent cryptocurrency exchange, has completed its latest Proof of Reserves (PoR) as of March 31, 2025. This verification process includes client holdings in various cryptocurrencies such as BTC, ETH, SOL, USDC, USDT, XRP, and for the first time, ADA. The PoR confirms that Kraken holds sufficient assets to fully back client balances, demonstrating a reserve ratio of 114.9% for Bitcoin. This means that Kraken holds nearly 15% more Bitcoin than it owes to its users, with 192,091.25 BTC in its wallets compared to customer balances totaling 167,188.68 BTC.

The PoR process at Kraken is comprehensive, incorporating not just spot holdings but also margin positions, futures balances, and staked assets. This holistic approach ensures that all types of customer exposure are considered. Kraken uses a Merkle tree, a cryptographic data structure that compiles all user balances into a single root hash, allowing users to verify their specific balances without compromising personal privacy. A third party then verifies that the exchange’s on-chain holdings are equal to or greater than total client balances, helping to confirm that Kraken is not operating on fractional reserves.

Kraken's PoR method stands out in several key ways. Unlike many exchanges that only showcase assets, Kraken also discloses client liabilities, providing a more accurate impression of solvency. Additionally, Kraken allows users to independently verify their balances via Merkle tree proofs, building trust and accountability. Kraken's commitment to transparency is ongoing, conducting PoR routinely to ensure users have consistent visibility into how the platform is managing their funds.

Following the collapse of several prominent crypto exchanges, clients are increasingly demanding transparency and accountability. Kraken's high reserve ratio and user-verifiable methodology are a direct response to this need. The exchange is committed to releasing a PoR quarterly, along with its previous-quarter financial results, to provide even more frequent transparency. Kraken is also working toward expanding the scope of future PoRs to include a broader range of supported assets, further strengthening its commitment to accountability across the entire platform.

Since 2014, Kraken has been a leader in setting and raising the PoR standard for crypto holders seeking a trustworthy and forward-looking exchange. The latest PoR reaffirms Kraken's industry leadership in transparency, providing clients with the assurance that their assets are safe and fully accounted for. This commitment to transparency is crucial in an industry where trust and accountability are paramount.