River Proof of Reserves: Setting a new standard for Bitcoin exchanges
At River, we believe that you deserve to know that your Bitcoin is safe, which is why we’re proud to announce River Proof of Reserves. Leveraging Bitcoin’s trust-minimized design, this new tool empowers you to verify that the Bitcoin you hold at River is securely held in full reserve in cold storage. Although a few other firms offer proof of reserves, our implementation sets a new standard for transparency and ease of use. Additionally, River is the first Bitcoin-only company in the United States to offer this level of transparency.
Why we built River Proof of Reserves
As Bitcoiners, we’ve always encouraged our clients to self-custody their Bitcoin and we’ve made it easy with automatic and free withdrawals. However, many people don’t feel comfortable with self-custody and prefer to trust a third party to keep their Bitcoin safe. Unfortunately, not all institutions have lived up to that trust.
The collapse of Prime Trust and FTX are stark reminders of what happens when transparency and accountability are overlooked. Misuse of client assets, fractional reserves, and smoke and mirrors management led to catastrophic losses for many people and businesses. Understandably, the deception of these companies has left lasting scars on the industry and deeply damaged trust.
In the wake of these failures, we have a real opportunity to build a safer industry with transparency at its core. After all, this is the ethos of Bitcoin. People and businesses deserve an institution they can trust AND verify.
At River, we strive to be the most transparent and trustworthy Bitcoin exchange in the world. By putting our reserves out in the open, we drastically reduce the possibility of the smoke and mirrors that enabled past failures. Our goal is to give our clients complete peace of mind, knowing their Bitcoin is always rightfully theirs.
How to verify River Proof of Reserves
Our Proof of Reserves makes verification accessible to everyone. In the past, verifying reserves was not very user-friendly, limiting who could participate. We changed that. Our tool empowers all our clients to verify our reserves regardless of technical ability while providing more advanced users the tools they need to run in-depth local verification (see the code on Github here).
Follow along as I walk you through how to verify our reserves for yourself in the video below. You can find an in-depth overview of River Proof of Reserves on River Learn.
Setting a new standard
River Proof of Reserves is more than a new feature, it's a commitment to transparency. For too long, people have placed their trust in custodians because they believe in Bitcoin. Now it’s time for the industry to earn that trust. At River, we’re leading by example by proving every month that your Bitcoin is exactly where we say it is.
If River sounds like the kind of place you want to use to buy, sell, and hold Bitcoin, you can get started in minutes.
Whether you use River or not, we encourage you to reach out to your custodian and request they publish their proof of reserves. You deserve to know your Bitcoin is safe.
It’s time to build an honest and robust financial system for all. Stay tuned for more updates as we continue to set the gold standard for Bitcoin security and transparency.
Alex Leishman
River CEO and Bitcoiner