Kraken exchange holding $19B in Bitcoin and Ethereum: Details
The audit report found that the Kraken exchange is holding huge amounts of funds in the top two biggest crypto assets.
Kraken is a popular crypto exchange and this exchange is known for its Global crypto services. This exchange is currently standing at 4 ranks in the crypto industry, in terms of the highest volume trading crypto platforms.
Armanino LLP conducted an audit on the Kraken exchange. Through the blog post “Proof of Reserves” by Kraken exchange, the firm revealed that it is holding huge amounts of funds in its reserved balance sheet. Reserved funds include only the Bitcoin and Ethereum crypto assets.
Exchange is holding $19 billion worth of Bitcoin and Ethereum including $3.5 billion worth of ETH held in Kraken’s staking service, as an ETH 2.0 validator.
After 2014, this is the second time an audit has been conducted on the Kraken exchange. Armanino LLP noted that research and data records on the holdings of reserved funds witness that all the funds went under reserve work to reconstruct a Merkle tree, which means that, small collections resulted in big.
The actual reason behind the public show-off of the reserved fund by the Kraken exchange is part of Kraken’s efforts to bring more transparency in its operations from every perspective because in the present time many crypto exchanges are facing scrutiny issues because of worldwide regulators.
The Chief Product Officer at Kraken, Jeremy Welch, stated that the exchange aimed to the public its reserved fund’s audit every year to remain more transparent with the users.
“Security and transparency for our customers have been at the core of our culture as a company and the core of our practices and operations from the very beginning. Regular Proof of Reserves audits will demonstrate that, for Kraken, our client security and safety are a top priority.” —said Welch.
In this crypto industry, Kraken is known for its support of its users’ unique crypto offerings. Recent reports confirmed that the exchange is working on NFTs based projects that will not only allow its users to buy and sell NFTs collectibles but also borrow funds by using the NFTs as collateral.
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