Crypto Exchange OKX Has A Plan to Assuage Traders’ Fears: Transparency

The company’s latest tools reflect a growing industry-wide push to strengthen transparency following FTX’s marked lack thereof

article-image

Source: Shutterstock

share

Spot cryptocurrency and derivatives exchange OKX is bolstering its efforts around transparency in a bid to reinforce trust from existing customers — and in a play to win over potential new traders — following the crash of rival FTX, which took the opposite approach.  

The Seychelles company has rolled out a proof-of-reserves page on its website that shows its latest collateralization ratios, as well as a self-audit tool intended to verify assets are backed on a one-to-one basis, known as proof of reserves.

The concept, designed to act as a safeguard for client funds that becomes even more relevant in the event of another pronounced downturn and ensuing spate of withdrawals, is gaining traction. FTX’s auditor and Binance have both pushed for the setup to become an industry standard. 

OKX, meanwhile, is rolling out what it calls an independent custodial wallet designed to enable institutional clients to secure their assets separately from its reserves. 

The wallet, set to launch in coming weeks, is designed as a real-time tracker for wallet balances and safeguard the private keys of customers in a custodial model. 

Ripple effects have continued, largely unabated, following the liquidity crunch that essentially forced FTX to declare bankruptcy. Lawyers for FTX and its affiliates said in a motion that as many as one million creditors could be affected.

Lennix Lai, OKX’s financial markets director, told Blockworks that while the crypto exchange had no direct exposure to FTX, customers are reeling and want to know what firms — especially exchanges and custodians — are doing about their unease.

“That’s why we’re in the process of a third-party audit to publish our Merkle Tree proof-of-reserves, and we’ve shared 23 of our BTC addresses and 13 ERC20 addresses publicly to verify a portion of our reserves,” he said. 

Added Lai: “Our new proof of reserves [and self-audit features] give users the ability to self-verify that their assets are 100% backed. But the third-party audit will provide additional reassurance.”

It is unclear just how effective so-called “proof of reserves” dashboards from OKX and others, like Crypto.com, will be in calming investor fears

“As this crisis has made apparent, centralized intermediaries of financial transactions are opaque and often untrustworthy,” executives at crypto-focused asset managerPantera Capital wrote in a Nov. 11 letter to clients.. “Nothing could have made more obvious the need for decentralized, trustless protocols that allow users to trade, hold, and transfer their assets without relying on entities like FTX, Celsius or Voyager.”

Crypto storage wallet Arculus said it has seen a sales boost amid the recent heightened volatility, but declined to comment on specific sales. And digital assets access provider Wellfield Capital said last week it expects its revenue to rise, as the market shifts away from centralized exchanges — toward decentralized services and self-custody.

“Going forward, OKX will continue to do whatever we can to demonstrate our solvency and stability, while continuing to safeguard our users’ data,” Lai said.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Research Report Templates.png

Research

The convergence of DePIN and energy generation aims to address modern grid challenges by incentivizing distributed generation.

article-image

An improving outlook on tariffs is positive for cryptocurrencies, but a sustained rally is going to take movement on the regulatory front

article-image

Apollo’s Christine Moy explained how the “velocity” of innovation in crypto has led to the evolution of RWAs

article-image

Warren Buffett attributes his astounding investment returns to only about a dozen “truly good decisions” he’s made

article-image

This report has been corrected.

article-image

Stablecoin revenue a bright spot for the crypto exchange in Q1, as trading revenue dropped 19% quarter over quarter

article-image

Creators are being told to “shill” their tokens and cash in on their “cults”