Proof of Reserves
Fraser Matthews, President
Netcoins understands the importance of transparency in our platform, and has put together a Proof of Reserves for its Canadian operation.
Any cryptocurrency that is held in a users Netcoins account is held in custody in a hot or cold storage wallet, which can be converted into Canadian dollars (CAD) at any time.
All custodied cryptocurrency assets are backed 1:1 at all times and at least 80% are held in an insured cold storage vault. All cold storage cryptocurrency assets are held with BitGo, our qualified and insured custodian.
Netcoins 2023 Q3 Proof of Reserves Report
Our proof of reserves and platform due diligence report was completed by the Blockchain Intelligence Group (BIG).
Netcoins maintains a reserve ratio of over 97% for all the cryptocurrencies custodied in its cold wallet.
Although our decision document requires Netcoins to hold over 80% of user funds in cold storage, Netcoins’ has a percentage cold storage reserve balance of over 97% of its client funds. Netcoins doesn’t hold Cosmos, and Tezos in cold storage as the current version of its cold wallet provider doesn’t support these currencies. All the funds for these currencies are held securely in a hot wallet provided by Fireblocks which is insured by Coincover. It should be noted that the Ethereum balances also include the balances for the ETH staking wallet. Crypto asset key material secured by Coincover is 100% insured against loss or theft. Coincover is based in the United Kingdom and is regulated by the U.K. Financial Conduct Authority.’ See full report here.