US dollar-cryptocurrency exchange XREX released a beta version of its Proof of User Digital Asset Balance on December 30th, allowing users to directly verify on the XREX app via Merkle tree. With a user-friendly self-verification process, users can ensure that their digital assets are properly accounted for and safeguarded by the exchange, without being used for other purposes.
XREX co-founder and CEO Wayne Huang said, “This is just the first step in XREX’s self-compliance as a centralized exchange operator. In the next few months, the XREX team will finalize the entire system, including fiat currency and other user investment positions. Our goal is to establish an accounting and audit system for a centralized exchange. Not only will that include self-compliance but also professional third-party accountants with a set of tools and reference standards. By using these standards, we look forward to maintaining healthy interaction and communication with regulatory agencies, hoping that the cryptocurrency industry will continue to grow and innovate under clear and reasonable regulation in the future.”
With the release of the Proof of User Digital Asset Balance beta version, the XREX team has also published a Merkle tree generation tool on GitHub, providing an open-source code for building custom Merkle trees for exchanges to generate Proof of User Digital Asset Balance reports, reducing the resources and time to do so.
XREX users can simply launch the XREX app, go to the Wallet page, and tap on the green banner to enter the “Proof of User Digital Asset Balance” page. Users can choose to view the report or tap on the “Verify” button to verify the proof of their digital asset balance and authenticate if their balances have been included in the report.
XREX has released its first Proof of User Digital Asset Balance report, with the snapshot taken on December 29, 2022, at 17:18:31 hours, and will regularly release reports for user review and verification.
The Proof of User Digital Asset Balance report covers “Total User Digital Asset Balance”, which includes spot digital currency assets that XREX users store on XREX. It does not include user fiat assets, digital assets staked on XREX Rewards, or DeFi staking on the XREX platform.
XREX co-founder and Chief Revenue Officer Winston Hsiao emphasized that the XREX vision is to “redefine banking together”, blockchain technology and cryptocurrency applications will bring positive and long-lasting changes to the global financial system. Therefore, a relatively mature, sound accounting and auditing system can be applied to the cryptocurrency industry. “Only by communicating using the same nomenclature, can traditional finance and cryptocurrency innovation complement one another, providing users with more transparent, safer, and more credible services.”
XREX is a blockchain-enabled financial institution with licenses and registrations in multiple countries including the United States, Canada, and Lithuania, and has completed the anti-money laundering statement in accordance with Taiwanese financial supervision regulations. XREX provides diverse cryptocurrency financial services to corporate and individual users, including digital asset custody, wallet, cross-border payment, fiat-crypto conversion, cryptocurrency exchange, asset management, fiat currency on-off ramps, and more. XREX’s extensive partnership with international banks enables USD deposit and withdrawal services in nearly 90 countries worldwide.
XREX is expected to release the second beta version of the Proof of User Digital Asset Balance report in January 2023 and looks forward to working with users, peers, accounting professionals, and regulatory authorities to redefine banking together.