📑 The Block: Proof of Reserves Becomes the Industry Baseline for Exchange Trust

📑 The Block: Proof of Reserves Becomes the Industry Baseline for Exchange Trust

Post-FTX, Proof of Reserves (PoR) has gone from a rare practice to an industry-wide expectation for crypto exchanges.
• PoR combines cryptographic proof of assets with proof of liabilities via Merkle trees and zk-SNARKs, letting users verify their balance is counted without exposing anyone else's.
• Binance's SAFU insurance fund holds roughly $1B as a backstop, with stablecoin reserves reported above 100% coverage.
• PoR alone isn't enough — institutions still want asset segregation, regulatory oversight, and insolvency protections before committing large capital.

💡 Why it matters: As tokenized assets and stablecoins scale, verifiable reserves are becoming table stakes — the exchanges that pair PoR with real regulatory and insolvency protections will have the edge for institutional flows.

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