Custody & Safeguarding
Proof of Reserves (PoR)
Cryptographic attestation that a CASP holds the crypto-assets it claims to hold on behalf of clients.
Definition
Proof of Reserves is a cryptographic verification that a CASP's on-chain holdings match its liabilities to clients. Typically uses Merkle-tree commitments enabling each client to verify their balance is included in the total. Industry practice post-FTX; MiCA Article 75 reconciliation requirements work alongside.