What Proof of Reserves Shows — and Doesn't
Proof of Reserves is a disclosure that lists on-chain assets held by an exchange to back customer balances at a specific point in time. It often uses a Merkle tree to aggregate liabilities. But the snapshot has limits: it doesn't capture off-chain liabilities like fiat or loans, can't prove exclusive control of keys, and can be gamed by moving funds just before the check. A July 2026 primer from The Block laid out these gaps, calling PoR a point-in-time snapshot that is necessary but not sufficient for a full solvency audit.
" Translation: "Hvad Proof of Reserves viser — og ikke viser
Proof of Reserves er en oplysning, der lister on-chain-aktiver, som en børs besidder for at understøtte kundesaldi på et bestemt tidspunkt. Det bruger ofte et Merkle-træ til at aggregere forpligtelser. Men øjebliksbilledet har begrænsninger: det fanger ikke off-chain-forpligtelser som fiat eller lån, kan ikke bevise eksklusiv kontrol over nøgler og kan manipuleres ved at flytte midler lige før kontrollen. En primer fra juli 2026 fra The Block beskrev disse huller og kaldte PoR et øjebliksbillede, der er nødvendigt, men ikke tilstrækkeligt for en fuld solvensundersøgelse.
" Note: "Merkle tree" -> "Merkle-træ" (common). "off-chain liabilities" -> "off-chain-forpligtelser". "gamed" -> "manipuleres". "primer" -> "primer" (or "introduktion", but primer is fine). "The Block" kept. "point-in-time snapshot" -> "øjebliksbillede". "solvency audit" -> "solvensrevision" or "solvensundersøgelse". I'll use "solvensrevision" for consistency. Third paragraph: "The Q2 2026 Snapshot
CoinMarketCap's data for the quarter showed USDT as the largest reserve asset at roughly $57.6 billion, followed by BTC at $55.5 billion. The month-over-month decline of 5.3% came as some exchanges adjusted their disclosures or saw outflows. The numbers reflect only what exchanges chose to report on-chain, leaving off-chain positions invisible to users.
" Translation: "Øjebliksbilledet for Q2 2026
CoinMarketCaps data for kvartalet viste USDT som det største reserveaktiv på cirka 57,6 milliarder dollars, efterfulgt af BTC på 55,5 milliarder dollars. Måned-til-måned-faldet på 5,3% kom, da nogle børser justerede deres oplysninger eller oplevede udstrømning. Tallene afspejler kun, hvad børser valgte at rapportere on-chain, hvilket efterlader off-chain-positioner usynlige for brugerne.
" Note: "month-over-month" -> "måned-til-måned". "outflows" -> "udstrømning" (or "udstrømninger"). Fourth paragraph: "A Playbook for Evaluating PoR
Industry observers have developed a checklist for assessing PoR disclosures. It includes checking the frequency and scope of reports, verifying the snapshot date, analyzing per-asset reserve ratios, confirming on-chain addresses and signed messages, testing Merkle proof inclusion, scanning for timing games, and cross-checking with independent data. The idea is to combine PoR with other checks and risk limits, since no single snapshot can guarantee solvency.
" Translation: "En manual til evaluering af PoR
Brancheobservatører har udviklet en tjekliste til vurdering af PoR-oplysninger. Den inkluderer kontrol af hyppighed og omfang af rapporter, verifikation af snapshot-datoen, analyse af reserveforhold pr. aktiv, bekræftelse af on-chain-adresser og signerede meddelelser, test af Merkle-bevisinklusion, scanning efter timing-manipulation og krydstjek med uafhængige data. Ideen er at kombinere PoR med andre kontroller og risikogrænser, da intet enkelt øjebliksbillede kan garantere solvens.
" Note: "playbook" -> "manual" or "spillebog", but "manual" is fine. "timing games" -> "timing-manipulation" or "tidsmanipulation". "cross-checking" -> "krydstjek". Fifth paragraph: "Lessons from the Field
In an editor's note, the author of the Q2 2026 analysis said they started tagging venue risk and observed exchanges with strong per-asset ratios but increasing stablecoin weights. The biggest win, they noted, was catching timing quirks around snapshots — a reminder that even well-structured PoR can be misleading if the timing is off. The author didn't name specific exchanges, but the pattern suggests that stablecoin-heavy reserves may mask risk if those tokens aren't fully backed or easily liquidated.
The challenge for users remains: PoR is a necessary signal, but it's not a full audit. Without combining it with other checks and risk limits, the snapshot can be stale or gamed. As the industry matures, the question of how to close the gap between what PoR shows and what it hides will only grow more urgent.
" Translation: "Erfaringer fra praksis
I en redaktionel note sagde forfatteren af Q
