Today, only 47.3% of the total Bitcoin held on exchanges has passed a proof of reserves verification. This raises concerns about transparency and reliability in asset management.
Current State of Bitcoin Reserves
According to River, only 47.3% of the approximately 2.4 million Bitcoin stored on exchanges has undergone public proof of reserves verification. Unverified reserves leave 1.26 million Bitcoin in the hands of custodians without evidence, fueling concerns about potential hidden insolvency.
Reasons for Low Reserve Verification
There are several reasons why the level of reserve verification remains low:
1. **Technical Complexity** – Implementing proof of reserves requires technical resources that many platforms lack. 2. **Privacy Concerns** – Exchanges worry that proofs could disclose user activities or competitive balances. 3. **Lack of Regulation** – Without clear industry rules, transparency is not mandatory.
River's Approach as a Model for Others
River Financial offers monthly proof of reserves, showing assets and liabilities. For July 1, 2025, this includes 21,314.27 BTC in assets versus 20,971.98 BTC in liabilities, exceeding 100% reserve coverage. Their tool sends a small on-chain transaction to prove wallet ownership and provides a way for users to confirm their inclusion while maintaining identity privacy. They also publicly share audited financial statements, marking themselves as the first U.S. Bitcoin-only exchange to do so.
Issues surrounding reserve verification raise caution among users of crypto exchanges. Examples like River demonstrate that transparency and protection of client interests can coexist despite existing regulatory uncertainties.
