Transparency is more important than ever. Ledn’s Proof-of-Reserves allows our clients to periodically verify that we have fully and accurately accounted for their Bitcoin and USDC on platform.
Trust and security are always at the center of our business philosophy. In January 2021, we were the first lender to ever undergo a Proof-of-Reserves Attestation with a Certified Public Accountant and since then, this procedure has been conducted every 6 months.
All client balances on platform as of June 30, 2022 at 11:59 PM EST were automatically included in this latest attestation. To continue our commitment and provide further confidence to our clients, Ledn decided to move up its 4th Proof-of-Reserves attestation from July 31 by one month to June 30.
What is a Proof-of-Reserves Attestation?
A Proof-of-Reserves attestation is a procedure whereby an independent public accountant reviews Ledn's client asset balances, as well as its lending, and custodial balances at a point in time, independent of Ledn's management, to ensure that the company is properly accounting for client assets.
What makes Ledn’s Proof-of-Reserves Attestation different?
I) Ledn is leading the charge on transparency & accountability
Ledn’s periodic report was the first of its kind from a digital asset lender and continues to be an industry-leading approach.
II) Transparency meets privacy
Private client information is never exposed to the public accountant during the Proof-of-Reserves attestation procedure. Ledn creates a unique anonymized hash ID for every client reference number - and for every new attestation. This hashed ID is matched with each account's balances for the attestation. The unique hashed ID is then provided to each client with a balance, so that they can verify their balance was included in the attestation on the public accountant's website.
III) Periodic report ensures accuracy
The power of the Proof-of-Reserves periodic report goes deeper than just assessing total assets versus total liabilities; it allows each individual client to sign in with their unique client hashed ID and get individual account level detail.
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Understanding how valuable this process is to our business and to our clients, we are working to increase the frequency of our periodic report in the future. More to come.
This article is intended for general information and discussion purposes only, it is not an offer, inducement or solicitation of any kind, and is not to be relied upon as constituting legal, financial, investment, tax or other professional advice. This article is not directed to, and the information contained herein is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution, publication, availability or use would be contrary to law or regulation or prohibited by any reason whatsoever or that would subject Ledn and/or its affiliates to any registration or licensing requirement. This article is expressly not for distribution or dissemination in, and no services are being marketed or offered to residents of, the European Union, the United Kingdom or the United States of America. A professional advisor should be consulted regarding your specific situation. Digital assets are highly volatile and risky, are not legal tender, and are not backed by the government. The information contained in this publication has been obtained from sources that we believe to be reliable, however we do not represent or warrant that such information is accurate or complete. Past performance and forecasts are not a reliable indicator of future performance. Any opinions or estimates expressed herein are subject to change without notice. We expressly disclaim all liability and all warranties of accuracy, completeness, merchantability or fitness for a particular purpose with respect to this article/communication. For full legal terms and conditions visit https://ledn.io/legal