Proof of Reserves

Proof of reserves is a mechanism — usually a Merkle-tree attestation plus on-chain wallet disclosures — that lets customers verify a custodian actually holds the crypto it claims to. It's meant to prevent fractional-reserve blowups like FTX.

A full proof of reserves also covers liabilities (proof of solvency), showing reserves exceed what customers are owed. Look for regular, third-party-audited attestations rather than screenshots or marketing claims.

Why it matters for Milo customers

Milo provides proof-of-reserves transparency: borrowers can verify their pledged collateral is held 1:1 in segregated custody. For self-custody mortgage applicants, you provide proof of your own reserves through wallet attestations.

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