Bitget Crypto Exchange Reaches 223% Proof-of-Reserves Ratio

Crypto exchange Bitget recently announced that its total proof-of-reserves ratio has reached 223%. The reserve stands at $1.44 billion, spread across 31 different crypto assets, with reserve ratios for Bitcoin (BTC), Tether (USDT), Ether (ETH), and USD Coin (USDC) at 454%, 135%, 171%, and 2,604% respectively.

In an interview, Bitget executives told Cointelegraph that the exchange operates without relying on debt or users’ funds for its transactions or investments, and is “proud to be debt free.” To back this up, the exchange has a $300 million User Protection Fund, which they claim functions better than third-party insurance.

Though not yet a regulatory requirement, Bitget seeks to increase the number of partnerships with third-party auditors to examine its assets and reserves. The money for these reserves comes from profit through transaction fees, returns through investments and acquisitions, and the exchange updates its proof-of-reserves every month.

In the wake of the cryptocurrency exchange FTX’s collapse, proof-of-reserves has become a popular means of disseminating information on exchange assets. However, Jack Graves, professor of law at Syracuse University, has cautioned against its effectiveness. He has pointed out that “while you can audit how many assets a crypto exchange has on-chain, it is much harder to determine how much of it is pledged as collateral unless you have access to their financial services, books, and records.”

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