From Babylon to Blockchains, auditors remain the premier provider of trust in society. The technology evolves. Our role does not. Enter the future with LedgerLens Proof of Reserves.
Proof of Reserves is a set of procedures whereby an exchange, custodian, token issuer, ETF issuer, or crypto fund demonstrates that they have enough assets in reserve to exceed customer liabilities.
Across Issuers, the “assets held in reserve” and the “liabilities owed to customers” look a little different:
| Issuer | Assets | Liabilities |
|---|---|---|
| Stablecoin | Fiat & Treasuries held in Banks | Tokens Issued on a Blockchain |
| Exchange | Digital Assets held in Custody | Customer Liabilities as Tracked on the Exchange's Database |
| Crypto ETF | Crypto held in Custody | ETF Shares Issued and Outstanding |
Use LedgerLens to provide real-time attestations for stablecoin issuers, ETFs and asset-backed token projects, as frequently as every 30 seconds.
Use LedgerLens to bring attested data on-chain for use in smart contracts, DeFi protocols, and more.
**to edit**Don’t trust, verify… right? The old adage in the industry is certainly a long-term goal to strive for. However, there are still huge transparency gaps in the industry that haven’t been solved with cryptography, blockchains, or decentralisation. To address those residual gaps, Certified Public Accountants are in prime position to fill these transparency gaps for Proof of Reserve engagements, as we have been providing trust-services for the past century to fulfil the public’s needs. Just a few examples of how auditors enhance the validity of a Proof of Reserves process:
While industry efforts for self-attestations are a step in the right direction, the fact of the matter is that regulators demand a 3rd-party auditor to confirm balances.
**to edit**The Audit Profession is at a crossroads. While the world digitizes and provides information in real-time, the Audit profession has lagged, defaulting to reporting 30, 60, or even 90 days late. At the same time, the profession is bleeding talent and losing services to competitors. Do you see any CPA or CA Firms providing Smart Contract Audits? I didn’t think so.
Auditors need Proof of Reserves because it provides an opportunity to provide value to the public, growth opportunities for their careers, and the avenue to maintain their status as the “trust providers” of society as the world digitizes and migrates on chain.
LedgerLens’ team of certified public accountants and blockchain experts are here for engagement support to get your practice off the ground.
Use LedgerLens’ personnel to staff and support your digital asset engagements
Leverage our team of experienced, certified public accountants to train and equip your team.
Access an expanding network of Digital Asset industry connections and knowledge sharing.
