Bybit’s proof-of-reserve attestation showcases 100-124% collateralization across 32 assets as risk management takes center stage.
According to a press statement dated December 20, cryptocurrency exchange Bybit has added 32 additional coins to its proof-of-reserves assessment. This audit confirms that Bybit’s reserves are equal to or greater than exchange users’ assets on deposit. According to the audit, Bybit has bitcoin reserves that range from 100% to 124% of the total amount owing to clients.
This shows that the exchange has enough collateral on hand to support all of the managed assets. Bybit stores digital assets securely using a multi-tier wallet architecture that consists of warm, hot, and cold wallets.
To strengthen asset security measures, the exchange has teamed up with Bitcoin custodians Fireblocks and Copper. The extended proof-of-reserves is consistent with Bybit’s emphasis on industry openness for cryptocurrencies.
Currently, the organization has the highest trust score on CoinGecko’s exchange benchmark and a “AA rating” from the 2023 CCData study. Bybit is one of the cryptocurrency companies that now offers proof-of-reserves evaluations to clients to reassure them that their holdings are secure and not fractionally reserved.
Transparent proof of solvency continues to be essential for preserving trust as the larger digital asset sector emphasizes prudent rules and self-regulation.
However, it is important to remember that proof-of-reserves does not consider traditional assets and obligations; it only covers crypto assets. A crypto firm’s proof-of-assets would appear entirely healthy if it had a sizable number of digital assets but was practically bankrupt from debt incurred in the traditional financial environment.
