The assets are diversified across SOL, USD, BTC and ETH, which ensure strong liquidity.
Backpack Exchange, a well-known name in the field of cryptocurrency after the collapse of FTX, has announced that it will be publishing its Proof of Reserves every single day, verified and built by the acclaimed blockchain security firm OtterSec.
This development will shape the way exchanges develop transparency and trust amongst its users. This move by Backpack Exchange shows that it is committed to upgrade the security standards and reassure its users that their assets are safe and sound. This move will shape how cryptocurrency exchanges will built credibility within the industry moving forward.
Proof of Reserves (POR) is a critical system that let exchanges show they hold customer funds securely and transparently, matching or exceeding total user balances held on the platform. This method avoids the temptation for exchanges to misuse customer deposits and offer users peace of mind that their coins are truly accessible and not at risk of insolvency.
Through the previous years, it has been highlighted that there is a need for robust, verifiable PoR, as the downfall of major exchanges revealed mismanagement and hidden liabilities. For Backpack Exchange, this launch is not just a product feature but a statement of values: transparency, trust and security.
In an image shared by Degen News, Backpack’s latest PoR snapshot, verified on August 17, 2025, paints a clear picture of the platform’s financial health:
This ratio is indicating that the exchange currently holds more funds in reserve than the total owed to its users. It means that if the need be it can easily meet withdrawal demands even in the event of exceptional volatility.
These numbers indicate that Backpack has diversified holdings. The exchange has a great holding of Solana (SOL) which also indicates that its tech roots and strong community base, while substantial reserves in USD, BTC, and ETH offer deep liquidity for widely traded pairs. The snapshot provides granular details, including wallet versus total balance breakdowns, available assets, open orders, and in-flight balances for each major asset. Such transparency is rare in this industry and speaks to the careful design of Backpack’s reserve reporting.
OtterSec is a tool that will be acting as an independent verifier in this case. This tool will help users verify proofs, and make sure that numbers published daily align with blockchain data and are free of manipulation or accounting tricks. OtterSec’s involvement means Backpack isn’t simply marking its own homework, it is opening up its books for deep, expert scrutiny.
Backpack’s move comes after two years of industry turmoil. The collapse of FTX in the late 2022 sent shockwaves through the entire crypto industry as billions of dollars in user funds vanished overnight, many of them were never to be recovered.
Though FTX had claimed strong financial practices, poor transparency, commingled assets, and lack of daily checks allowed problems to fester unseen.
As a response, the crypto sector demands for a little more credibility. Users these days demand for true transparency, feeding the audience with just monthly audits or quarterly statements is not enough. After the FTX collapse, the community strongly demands real-time assurance that indicate that their deposits are safe and not being misused. Amid these changed expectations, Backpack Exchange decided to answer the call with a system built for daily checks.
