Merkel Tree-based Proof of Reserves Information Published with New Assets stUSDT and stETH

[PRESS RELEASE – Singapore, Singapore, August 15th, 2023]

The most recent Merkle tree asset proof data for August 2023 features updates on ETH & stETH as well as USDT & stUSDT.

Users can examine Huobi reserves in detail on the asset audit section of Huobi’s official website. The accessible information includes the reserve ratio, assets in Huobi’s wallet, and user assets on Huobi. Huobi will routinely perform Proof of Reserve audits to assure users that their assets are protected.

* The screenshot is sourced from Huobi’s official website, where users can view the reserves on this page.

The specific reserve ratios presented in this update are as follows: 102% for USDT (Huobi wallet balance: 662,404,586 USDT), 101% for BTC (Huobi wallet balance: 25,410 BTC), 104% for ETH (Huobi wallet balance: 139,523 ETH), 103% for HT (Huobi wallet balance: 191,815,856 HT), and 103% for TRX (Huobi wallet balance: 9,702,620,024 TRX). The figures for USDT and ETH already account for stUSDT and stETH.

The Merkle Tree serves to summarize and authenticate the existence and integrity of blockchain data efficiently. It typically encompasses the underlying (transaction) database of the block, the hash of the block header (the Merkle Root), and all branches along with the underlying block data leading to the root. The computation of the Merkle Root for a blockchain generally entails grouping hash values of the data from that specific block and then recursively inserting the newly generated hash into the Merkle Tree until only the final root hash remains. Subsequently, it is recorded as the Merkle Root of the block header.

Proof of Reserves (PoR) is a widely used auditing method to confirm that a crypto exchange possesses adequate on-chain funds to cover all assets held on its platform. This is how the Huobi Merkle Tree operates: snapshots of all user balances are captured to create a Merkle Tree. The Merkle Tree contains the encrypted data of assets owned by all users on the exchange. The Merkle Root is derived from the Merkle Tree and consists of a single hash that encapsulates total balances in the snapshots. Then, the digital signatures of Huobi’s on-chain wallet addresses are validated to demonstrate ownership over the addresses that hold publicly verifiable balances. Finally, the total balances in on-chain wallet addresses are compared with the total balances indicated by the Merkle Root to confirm that all assets are backed 1:1 by Huobi’s reserves.

At Huobi, the team asserts that “to maintain data transparency and accuracy, the relevant reserves data on the asset audit page is currently updated monthly, with the snapshot date typically falling on the first day of each month. The Merkle Tree data update is usually finalized within the first week of each month. Additionally, Huobi plans to enhance relevant technical modules and collaborate with more technical service providers to ensure a more secure and transparent service. It is Huobi’s mission to adhere to the strategy of ‘global compliance’ and support the healthy growth of the crypto industry.”

About Huobi

About Huobi: Established in 2013, Huobi has transformed from a crypto exchange into a comprehensive ecosystem of blockchain enterprises that encompass digital asset trading, financial derivatives, wallets, research, investment, incubation, and other sectors. Huobi caters to millions of users globally, with a business footprint extending across over 160 countries and regions on five continents. Its three development strategies – “global development, technology drives development, and technology for good” reinforce its dedication to delivering extensive services and value to cryptocurrency enthusiasts worldwide.

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