Highlights:
- Proven, a maker of zero-knowledge proofs, said that it has raised USD 15.8 million for its “Proof of Solvency” solution, which lets crypto sector companies openly display their crypto holdings.
- Framework Ventures, which specializes in blockchain technology and decentralized finance, led the round, with participation from Balaji Srinivasan, Roger Chen, and Ada Yeo.
Proven, a developer of zero-knowledge proofs, revealed that it has acquired USD 15.8 million in initial investment for its “Proof of Solvency” solution, which enables crypto sector enterprises to show their crypto holdings publicly.
Framework Ventures, specializing in blockchain technology and decentralized finance, led the round, with participation from Roger Chen, Balaji Srinivasan, and Ada Yeo.
Using what is known as zero-knowledge proofs, Proven’s technology enables businesses to demonstrate to auditors and clients that they are being truthful about their crypto holdings. This approach uses cryptography to verify that the underlying data is faithful to the source without giving extra secret data to the verifier, allowing for transparent auditing.
Proven assists crypto exchanges, asset managers, stablecoin issuers, and custodians in demonstrating their solvency to consumers, lenders, and regulators on whatever schedule is required. Their balance sheets may be audited without revealing them or any other critical information to the public.
Although most proof-of-reserve systems display just the bare minimum of a company’s assets, Proven’s technology enables companies to showcase assets and liabilities without disclosing how the numbers were audited.
Richard Dewey, the co-founder of Proven, said, “We designed Proven to be a win-win solution that enables customers and regulators to have confidence in their exchanges, lenders, asset managers, and stablecoins while at the same time protecting sensitive customer information. We have received incredible support from many of the established participants in the crypto ecosystem and are looking forward to onboarding many more firms in the coming weeks.”
The cryptocurrency business has been periodically shaken by organizations attacking consumer cash and perhaps having poorly audited assets. This became abundantly clear with the fall and bankruptcy of FTX Holdings Ltd. and its sister business Alameda Research, which occurred when it was exposed that the two companies had falsified their financial statements.
Richard Dewey stated, “The last few months have highlighted an issue that has long plagued both traditional financial and digital asset firms – efficiently fostering trust with customers while maintaining a necessary level of privacy. The absence of this has led to significant distrust and, of course, contagion.”
Being one of the major publicly listed cryptocurrency exchanges, Deloitte Touche Ltd. audits Coinbase Global Inc. to offer evidence of reserves and liabilities. But, Deloitte and the other four major accounting firms are unwilling to provide their services to private crypto companies. Proven asserts that its technology will allow auditors and regulators in the sector to develop confidence.
The Proven team comprises several veteran quantitative traders and portfolio managers from prestigious firms such as Jane Street, Two Sigma, Pacific Investment Management Company, and Elm Partners. The firm has experience handling audits and understanding customer and regulator issues on asset transparency and risk.
Pilot partners of Proven include the cryptocurrency exchange Bitso, the stablecoin TrueUSD, and the cryptocurrency credit solution M11 Credit. It collaborates with them to generate consumer trust by using its technologies to confirm its assets and liabilities.
