CryptoQuant report highlights reserve disclosure

KuCoin ranked highest for proof-of-reserves transparency in CryptoQuant’s Annual Exchange Leader Report 2025, receiving a score of 96.7 and an A+ rating in the category.

The research firm evaluated centralized exchanges across several structural metrics including wallet disclosure, verification tools, reporting frequency and independent attestations. KuCoin led the field on transparency standards tied specifically to proof-of-reserves practices.

Reserve verification has become one of the most closely watched indicators of exchange credibility following a series of market failures that reshaped how users assess counterparty risk.

How KuCoin structures its PoR reporting

KuCoin publishes proof-of-reserves updates each month using a Merkle-tree structure that allows users to confirm their balances are included in the reserve snapshot. The reports are verified by security firm Hacken.

According to the exchange, more than 39 consecutive monthly PoR reports have been released so far. The most recent update was published on February 6, 2026 and included an external attestation confirming reserve balances.

KuCoin says its reserve ratios have consistently remained above 100%, indicating that assets held on the platform exceed user liabilities.

Investor Takeaway

Reserve transparency has become a competitive benchmark for exchanges. Regular reporting and third-party verification are increasingly viewed as baseline safeguards rather than optional disclosures.

Transparency tied to broader security initiatives

KuCoin links the transparency push to its broader $2 billion Trust Project, an initiative aimed at strengthening security infrastructure, compliance frameworks and risk controls across the platform.

CEO BC Wong said the industry is moving toward stricter expectations around disclosure and reserve verification as the market matures.

“Transparency and compliance are foundational to long-term trust in digital asset markets,” Wong said, pointing to verifiable reserves and consistent reporting as key structural safeguards.

Transparency becoming a market differentiator

CryptoQuant’s report suggests transparency metrics are increasingly shaping how exchanges are compared. Wallet disclosure, frequent reserve updates and independent verification are now central to assessing operational resilience.

Beyond transparency, the report also notes KuCoin’s expansion in spot and derivatives trading during 2025, highlighting continued investment in infrastructure and security alongside trading growth.

As regulation tightens globally, exchanges are likely to face growing pressure to maintain visible reserve backing and more rigorous disclosure standards.

Read the full report here .