🌴Merkle Tree Proof of Reserves

Essentially, any type of Company that holds digital assets, as tracked on it's own internal database, on behalf of external customers, can execute a Merkle Tree Proof of Reserves. Usually, that means it is the following types of companies:

• Exchanges: whereby a platform custodies digital assets on behalf of customers to facilitate trading, staking, and more activities.

• Custodians: whereby a platform custodies digital assets on behalf of customers for the primary purpose of securing digital asset

The standard timeline to complete the first report is 3 to 4 weeks once engagement starts. Subsequent reports are typically completed within 2 to 3 weeks.

Embedding the widget onto your website is as simple as inserting a simple line of code within your website. Here is the step-by-step:

1. Insert the following HTML code snippet in the section of your website where you would like to display the attestation reporting widget.

a. Production

• Copy

  <iframe title="iframe-title" src="https://widget.proof-of-reserves.ledgerlens.io/[version]/[client]" width="498" height="614"></iframe>

b. Staging

• Copy

  <iframe title="iframe-title" src="https://staging.widget.proof-of-reserves.ledgerlens.io/[version]/[client]" width="498" height="614"></iframe>

1. Parameter definitions within the code:

• src: property should follow the URL pattern noted above

• version: relates to the widget version # (i.e. v1, v2, etc)

• client: your client or product name being supported by LedgerLens

• width/height: specify the widget size on your page

1. Test the widget on your site

Subject to scoping, typicaly costs are around:

Price per Report: $2,000 to $50,000

• To deliver the AT-C 215 Auditor’s report on the in-scope assets and liabilities.

Monthly License Fee: $1,000 to $1,500

• Costs to build, host, and maintain the Embeddable Merkle Module and associated information.

Every Proof of Reserve engagement is unique. These unique characteristics that drive the range on costs are:

• Number/Complexity of Assets: refers to how many of the Customer Liability types (and associated collateral assets) are desired to be included within the scope of the PoR. If you have assets on obscure chains, it drives up costs due to new tooling needing to be built!

• Complexity of Asset/Liability Pairs: Many times, an exchange can support many complicated instruments on the platform (i.e. leverage products, derivatives, staking, lending, etc). The nuances of these asset/liability pairs adds time and effort to scope and execute the Proof of Reserve.

• Readiness of the Client: Please review the Proof of Reserve Checklist to ensure you are prepared!

Yes! We built our solution with regulation in mind. In fact, we have helped develop and craft multiple pieces of Proof of Reserves legislation, including Texas HB1666, so we know exactly what to look out for!

No, for this service, the Proof of Reserve report and Merkle Tree are published on a periodic basis. Typically, the reporting frequency is either monthly, quarterly, or semi-annual. To explore our real-time reserve service, please view our Real-Time Reserve services page.

Typically, the reporting frequency most clients opt into either monthly, quarterly, or semi-annual. The reporting frequency is driven by regulatory requirement or desire for enhanced transparency by our client.