Key Takeaways
- River secures over $800 million in Bitcoin for clients.
- The company launched its Proof of Reserves feature for transparency.
- River urges other exchanges to adopt full-reserve practices.
River, a U.S.-based Bitcoin exchange, has introduced the River Proof of Reserves system, enabling clients to confirm that their Bitcoin is fully backed by the company’s holdings. This move follows widespread concerns about transparency in the industry, especially after the collapse of exchanges like FTX.
The tool allows users to verify that their Bitcoin is held securely in multi-signature cold storage, with River currently safeguarding over $800 million in Bitcoin for its clients. According to CEO Alex Leishman, the company will offer monthly verifications to confirm the accuracy of its reserves.
River’s initiative aims to restore consumer confidence in Bitcoin exchanges by eliminating concerns over fractional reserve practices. Leishman urged other exchanges to adopt similar full-reserve models to enhance transparency and stability within the industry.
Proponents believe that wider adoption of proof-of-reserve systems could reduce risks related to leverage and bolster trust in the Bitcoin market.
