River Secures Over $800 Million in Bitcoin and Launches Proof of Reserve System

River launched a tool verifying over $800 million in Bitcoin held in full reserve custody, aiming to restore trust after failures like FTX with its River Proof of Reserves.

Deniz Saat

Sep 18, 2024 - 1 min read

River, a U.S.-based Bitcoin exchange, has launched its River Proof of Reserves feature, enabling clients to verify that their Bitcoin holdings are fully backed.

Proof of Reserves is the new gold standard. The excuses don't cut it anymore. It's time for everyone to demand transparency from their custodians and move the industry forward. https://t.co/gkM38PPFr1 pic.twitter.com/NbNlhsJBiP
— Alexander Leishman 🇺🇸 (@Leishman) September 18, 2024

The initiative aims to enhance transparency within the industry, following the collapse of exchanges such as FTX, which impacted consumer confidence.

According to River's CEO, Alex Leishman, River Proof of Reserves is designed to confirm Bitcoin balances and demonstrate the company's commitment to transparency and trust with clients.

The feature allows users to verify their Bitcoin is held in multi-signature cold storage with full reserves. Currently, River secures over $800 million in Bitcoin for its clients.

Leishman stated that the company will provide monthly verifications to confirm the accuracy of their holdings and urged other exchanges to adopt similar practices to improve transparency in the industry.

The implementation of this feature is intended to address concerns related to fractional reserve practices, which can potentially destabilize fiat currencies and contribute to financial instability.

Proponents argue that broader adoption of full-reserve proofs by Bitcoin exchanges could strengthen trust in the industry and reduce leverage risks.