Deribit Ends Daily Proof of Reserves Updates During Coinbase Integration
Summary
Deribit announces that it will remove its Proof of Reserves page and stop daily updates from September 1, 2026, citing wallet infrastructure changes during its integration with Coinbase. The previous page used a privacy-preserving binary Merkle tree: hashed client balances were grouped by asset so customers could check account entries, while aggregate liabilities could be compared with published on-chain wallet balances.
The notice says the change does not alter asset custody or protection. It describes VARA requirements for full liability coverage, segregation of client and company assets, and annual external reserve and financial statement audits. Deribit also says independent Proof of Reserves audits will continue twice a year, and that approximately 90% of client assets had migrated to Coinbase custody since the 2025 acquisition. This is an exchange statement, not an independent assessment; the document provides no audit findings or technical detail on the replacement reporting process.
Key ideas
- Deribit says it will discontinue daily Proof of Reserves publication as its wallet infrastructure changes during Coinbase integration.
- The former system used hashed, asset-specific client balance entries in a binary Merkle tree.
- Aggregate client liabilities were compared with on-chain balances of disclosed wallets.
- The notice says client asset segregation and full reserve coverage remain in place under VARA requirements.
- Deribit says independent reserve audits will continue twice yearly, but provides no audit results.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.