Proof of Reserves Solutions
Comprehensive proof of reserves solutions including Merkle Tree verification, on-chain attestations, and real-time monitoring
Merkle Tree Proof of Reserves
Publicly verifiable liability balances while preserving user privacy through cryptographic proof systems
How does a Merkle Tree work?
Extract Customer Liability Report
Extract a report of all customer balances from the crypto exchange or platform.
Hash Data
Hash user balance data to maintain privacy.
Create Merkle Tree Structure
Run the customer liability extract through the LedgerLens Merkle Tree generator.
Publish Tree & User Tools
Use LedgerLens to publish the Merkle Tree.
Verify Customer Accounts
Enable users to cryptographically verify inclusion within the Proof of Reserves, while still maintaining customer privacy.
Publish Merkle Root in Report
Publish the Merkle Root within the attestation report, which seals the dataset from future tampering and links the attestation report to the Merkle Tree.
Tools in your Merkle Tree Proof of Reserves Toolkit
All the tools you need to execute a Merkle Tree Proof of Reserves, out-of-the-box in one spot.
Merkle Tree Generator
Easily generate a Merkle Tree in minutes, for up to millions of client's customers, with our simple step-by-step process.
Customer Verification Portal
Enable your client's customers to verify inclusion within the Proof of Reserves procedures.
Merkle Tree Information Delivery via Widget or API
With a simple line of code, embed the results via widget or API to display Attestation Reports, the Merkle Tree Verification Hub, and summary information about the Proof of Reserves.
Customizable and Embeddable Widgets for Delivery
Change the style, themes, and colors to match your client's website and brand.
On-Chain Proof of Reserves
On-Chain Proof of Reserves brings off-chain reserves data such as bank balances, gold troy ounces held in vaults, treasury bond CUSIPs & maturity dates, real estate appraisals, and more onto blockchains through the Chainlink oracle network for use in smart contracts.
- Off-Chain Data Sources
- Tokenized asset reserve data exists off-chain, such as bank balances, T-bills, and more.
- API & Data Extraction Methods
- The information is extracted from the source through one of LedgerLens' data delivery methods.
- Data Aggregation & Analysis
- The information is ingested and analyzed for completeness and accuracy in accordance with parameters set by the auditor.
- Exposed via API
- A summary of that information is exposed via API to the Chainlink oracle network.
- Ingested by the Chainlink Oracle Network
- Node operators read the information and bring it on chain for use in smart contracts, DeFi, and more.
Tools in your On-Chain Proof of Reserves Toolkit
All the tools you need to execute an On-Chain Proof of Reserves engagement, out-of-the-box in one spot.
Administrative Control Panel
Configure your settings, manage your APIs, and support your Issuers with a robust data collection and reporting engine.
Live API Endpoint
Expose a summary of information that is aggregated by LedgerLens and exposed to Chainlink node operators.
{ "accountName": "STBT", "totalReserve": 49245882.16, "totalToken": 49072634.3, "timestamp": "2024-06-18T10:53:59.491Z", "ripcord": false, "ripcordDetails": [] }On-Chain Oracle Feeds
Use Chainlink Proof of Reserves or Chainlink Runtime Environment (CRE) to bring data on chain for use in smart contracts.
Frequently Asked Questions
- Is On-Chain Proof of Reserves an "attestation"?
- No audit or accounting standards exist for publishing data onto blockchains. Therefore, the output for this service alone is not technically an "attestation" when using the definition adopted by auditors and accountants. However, this product can be paired with Real-Time Proof of Reserves to issue a CPA/CA attestation.
- How long does it take to integrate and begin reporting with On-Chain Proof of Reserves?
- For standard deployments, the process to integrate all data sources, aggregate data, and publish information via API takes a matter of hours, if not minutes.
- How often is the data published on chain?
- The reporting interval is dependent on the least available data source. Assuming all of the token, bank, or other information is readily available via API or similar data extraction method, we can update the endpoint every 30 seconds. The frequency that data is published on chain is dependent on the Oracle Network and parameters set on the Oracle feed. Typically, data is published at minimum once a day, or more frequently as large changes in balance information occur.
- Who performs these types of engagements?
- On-Chain Proof of Reserves engagements are performed by independent CPA firms, tokenization platforms, and oracle providers. CPA firms like The Network Firm, the largest crypto-focused CPA firm in the U.S., use LedgerLens to execute on-chain PoR procedures for stablecoin issuers and RWA tokens. Oracle providers like Chainlink also leverage LedgerLens to bring off-chain reserve data on chain.
Real-Time Proof of Reserves
Real-Time Attestations are system-generated CPA/CA attestations. Information is compiled, analyzed, and automatically reported on by the system based on the requirements and inputs set by the auditor.
- Data Sources
- Begin your real-time journey with LedgerLens' 50+ active integrations.
- API & Data Extraction Methods
- Use our API builder or integrate data through a variety of other methods: FTP, FIX, virtual machine, and .csv or .pdf parsing.
- Data Aggregation & Analyzing System
- Aggregate the various Data Sources and apply valuation methodologies as needed.
- Attestation Reporting Engine
- Issue a system-generated Auditor's Report protected by LedgerLens' ripcords to ensure no inaccuracies.
Live Real-Time Reserves Dashboard
Experience our real-time monitoring capabilities with these live dashboards showing actual reserve data.
Bitwise Bitcoin ETF (BITB)
CoinShares Physical
Frequently Asked Questions
- What type of attestation reporting is available?
- Real-Time Proof of Reserves currently supports three types of attestation reports: AT-C 205 Examination Reports and AT-C 215 Agreed-Upon Procedures Engagements (both as promulgated by the American Institute of Certified Public Accountants), and ISAE 3000 (Revised) Engagements (as promulgated by the International Standard on Assurance Engagements). The team is looking to expand support for additional attestation and reporting standards, including international engagement and reporting standards.
- Can I pair Real-Time Reserves with your On-Chain Proof of Reserves service?
- Yes. In fact, it is encouraged to provide real-time transparency to your "traditional" users expecting a CPA attestation, along with crypto-native users expecting an On-Chain Proof of Reserves.
- How long does it take to integrate and begin reporting with Real-Time Reserves?
- For most deployments, the standard integration timeline is 2 to 4 weeks once development starts. Development start times are dependent on scoping and client onboarding processes.
- Who performs Real-Time Reserve attestation engagements?
- Certified and Chartered Public Accounting Firms use LedgerLens to deliver real-time attestations. CPA firms like The Network Firm, domiciled in the US, and Moore HK, domiciled in Hong Kong, use LedgerLens to deliver attestations for stablecoin issuers, RWA issuers, ETF issuers, and more.