Coinbase is making exciting moves towards promoting crypto exchange transparency. Check out the latest reports about this below.
Coinbase reveals efforts for transparency
US crypto exchange giant Coinbase is launching an initiative to help encourage more transparency among firms in the industry. This is particularly in regard to proof of reserves.
In a blog post, Coinbase made sure to explain how it’s exploring new ways to prove reserves using more crypto-native methods. The exchange is also announcing a $500,000 developer grant program. This aims to encourage others to do so as well.
Coinbase said that following the collapse of crypto exchange FTX, investors in the space deserve to see things transparently. They need assurance that they’ll have the ability to withdraw their funds after depositing to centralized platforms.
The firm listed several general suggestions for how proof of reserves could be done in the future. These include on-chain address disclosure with proof of access to the address’ private key.
Coinbase’ chief security officer Philip Martin stated the following:
“One silver lining in the collapse of FTX is a huge focus on transparency into the assets and liabilities of different crypto firms. At Coinbase, we believe that you deserve the best of both tradfi (traditional finance) and DeFi (decentralized finance).”
He continued and explained this:
“Today, we are the only company in crypto that is providing the transparency and assurance of a public company financial audit. For tomorrow, we are working toward a decentralized system where you don’t have to trust us, or any institution. You only need to trust the math. Everything should be transparent, immutable, and verifiable to all.”
It’s been just revealed that the crypto exchange giant Coinbase is unveiling the amount of Bitcoin (BTC) in its reserves. The exchange made this important move in a bid to be more transparent following the downfall of collapsed rival FTX.
Check out our previous reports in order to learn more details.