Back to all articles
Compliance
Proof of Reserves: On-Chain Transparency as a Competitive Advantage
How real-time proof of reserves builds institutional trust and why opacity is no longer acceptable in treasury solutions.
12 min read
December 30, 2024
The FTX collapse revealed that billions in supposed customer deposits never existed. Proof of reserves—cryptographic verification that backing assets exist and match liabilities—has become table stakes for institutional trust. GRAIN provides real-time, on-chain proof of reserves that anyone can verify. This transparency isn't just good governance; it's a competitive advantage that differentiates legitimate operators from the opacity that enabled past failures.
How Proof of Reserves Works
GRAIN's proof of reserves combines on-chain verification with third-party attestation. Smart contracts hold the USDC reserves and report balances in real-time. The circulating GRAIN supply is verifiable on-chain. Anyone can calculate the backing ratio: Reserve Balance / Circulating Supply. Monthly attestations from independent auditors confirm on-chain data matches custodial records.
24/7
Real-Time Reserve Verification
110%+
Current Backing Ratio
Monthly
Third-Party Attestation
Verification Interface
typescript
// Verify GRAIN Reserves Programmatically
const reserves = await grainContract.getTotalReserves()
const supply = await grainContract.totalSupply()
const backingRatio = reserves / supply
console.log(`Backing Ratio: ${(backingRatio * 100).toFixed(2)}%`)
// Output: Backing Ratio: 110.42%
// Anyone can verify at any time - no trust requiredReady to Transform Your Treasury?
Join forward-thinking enterprises using GRAIN for instant, zero-friction payments with protected reserves.