Phemex October Proof of Reserves Shows Strong Asset Backing

Phemex, a user-focused cryptocurrency exchange, released its October Proof of Reserves (PoR) report, confirming that all eight covered assets remain fully backed. The report shows an average reserve ratio of 131.36%, with each asset exceeding 100%. Bitcoin (BTC) recorded a reserve ratio of 103.13%, Ethereum (ETH) 123.79%, and USD-denominated assets 100.60%. Solana (SOL) stood at 141.42%, Avalanche (AVAX) at 143.43%, and TRON (TRX) at 123.86%, while XRP and SUI had the highest ratios at 157.03% and 157.58%, respectively.

Federico Variola, CEO of Phemex, emphasized that Proof of Reserves provides users with a clear view of how assets are backed at any given time. The October data shows full coverage across all reported assets, with additional reserves maintained across the portfolio. Phemex publishes these reports regularly to offer transparency into the relationship between customer liabilities and assets held by the exchange.

The October report uses a Merkle tree-based verification framework, allowing users to independently confirm their balances while preserving account-level privacy. This continues Phemex's commitment to regular reserve disclosures, enabling users to track reserve coverage over time as customer balances and asset composition change.

Phemex continues to enhance its custody, risk management, and operational infrastructure, maintaining regular Proof of Reserves reporting as part of its broader approach to asset protection and transparency. Founded in 2019, Phemex is a trusted crypto exchange serving over 10 million traders worldwide, offering spot and derivatives trading, copy trading, and wealth management products.