Recently, digital asset trading platform Catcrs released its latest Proof of Reserves Audit Report. According to the report, as of the audit snapshot taken on August 10, 2026, the reserve ratios of the four assets included in the verification scope of Catcrs—BTC, ETH, USDT, and USDC—were all above 100%, with corresponding on-chain reserves sufficient to cover user asset liabilities within the scope of the report.
This Proof of Reserves verification covered networks including Bitcoin, Ethereum, BSC, Tron, Solana, Polygon, Arbitrum, Optimism, Avalanche-C, and Base. The audit mainly included user liability statistics, wallet control verification, reserve balance calculation, and comparison of assets against liabilities.
From User Liabilities to On-Chain Assets: Corresponding Verification
According to the methodology disclosed in the report, the audit team first aggregated the user asset data provided by Catcrs, counted accounts with balances greater than zero across the four asset categories, and checked whether there were duplicate user IDs. To reduce the risk of personal information exposure, user liabilities were submitted in aggregated form, and the audit team did not obtain account information that could directly identify individuals.
During the reserve asset verification process, Catcrs provided the audit team with the public wallet addresses holding the relevant assets. The platform then initiated small-value outbound transactions of specified amounts from the provided addresses in accordance with the audit requirements. The audit team verified the transaction information on the corresponding blockchains to confirm that Catcrs had actual control over these addresses at the audit snapshot time.
At the same time, the audit team used independent programs to calculate the on-chain assets within the verification scope and compared them against the user liability data. The final disclosed results showed that:
- BTC reserve ratio was above 100%
- ETH reserve ratio was above 100%
- USDT reserve ratio was above 100%
- USDC reserve ratio was above 100%
This means that, at the specific snapshot time of August 10, 2026, all four types of assets verified in the report had reserve coverage of no less than the corresponding user liabilities.
Proof of Reserves Enhances Asset Transparency
For digital asset trading platforms, users generally find it difficult to directly understand the relationship between the on-chain assets and account liabilities of a platform. The purpose of Proof of Reserves is to provide verifiable evidence as to whether a platform holds the corresponding assets through the aggregation of user liabilities, verification of wallet ownership, and comparison of on-chain balances.
Compared with balances disclosed solely by the platform itself, the introduction of external audit procedures can reduce the issue of information being entirely dependent on the platform unilateral statements. This report also explains the data generation process, wallet verification method, and asset comparison procedures, allowing external parties to further understand the basis on which the reserve conclusions of Catcrs were formed.
However, the publicly released report discloses only that the reserve ratios of each asset category were above 100%, and does not list the specific reserve amounts, total user liabilities, or the complete list of wallet addresses. Therefore, while the report can demonstrate the coverage status of the relevant assets at the audit snapshot time, there remains room for improvement in the granularity of the publicly available information.
PoR Is Not Equivalent to a Full Financial Audit
The report also expressly states that this verification constitutes an on-chain Proof of Reserves assessment at a specific point in time and should not be interpreted as a comprehensive financial audit of all of the Catcrs assets, liabilities, or overall financial condition. Nor does it provide any guarantee regarding the platform technical security, system risks, or future asset status.
In other words, a reserve ratio above 100% indicates that Catcrs held relevant assets sufficient to cover user liabilities within the scope of the report at the designated snapshot time, but it does not independently prove that the platform is free from operational, security, liquidity, or other risks.
The report recommends that the platform continue to conduct independent Proof of Reserves verifications in order to maintain transparency of on-chain assets. For Catcrs, the key to further transparency building lies not only in publishing a single reserve result, but also in whether it can establish a regular update mechanism and gradually provide more complete reserve data, verification paths, and user self-verification methods.
This report provides a new reference point for external parties to understand the reserve coverage of the four core assets at Catcrs. Against the backdrop of the digital asset industry placing increasing emphasis on asset transparency, continuous, repeatable, and verifiable reserve disclosures will be more conducive to building long-term trust than a one-off audit conclusion.
