River, a prominent Bitcoin exchange in the U.S., has introduced River Proof of Reserves to ensure clients can verify that their Bitcoin assets are completely secured. This initiative sets a new benchmark for transparency in the wake of recent exchange failures such as FTX that have undermined consumer confidence.
Alex Leishman, CEO of River, commented, “River Proof of Reserves is not just about confirming our balances; it’s about affirming our dedication to integrity and fostering long-term trust with our clients.” He further stated, “Our mission is to cultivate unwavering trust with our users. Proof of Reserves represents the highest standard in Bitcoin custody.”
This new capability enables clients to independently verify that River keeps their Bitcoin in fully reserved multi-signature cold storage. Currently, River secures over $800 million in Bitcoin on behalf of its clients.
Leishman remarked, “We are setting the standard by demonstrating every month that your Bitcoin is precisely where we claim it to be.” In light of recent collapses, he urged the entire industry to embrace similar transparency initiatives to restore trust.
The enhanced transparency also helps avert fractional reserve practices that can destabilize fiat currencies and contribute to banking crises. Should more Bitcoin exchanges confirm full reserves, it might help rebuild confidence in intermediaries while curbing dangerous leverage within the system.
