Crypto derivatives exchange Deribit will stop publishing daily public proof-of-reserves updates after moving the majority of client assets to Coinbase. Proof-of-reserves is a recurring public report designed to demonstrate that an exchange holds sufficient crypto to cover customer balances. The practice became near-standard across major exchanges after the 2022 collapse of FTX, which failed while presenting itself as solvent, pushing the industry toward more frequent public verification of holdings. Deribit states that the change stems from a custody transition, not from any solvency problem.

The company announced the discontinuation of the daily reports in an exchange update published on its Insights blog. The announcement concerns how often reserve data is published and how publicly visible it is. It is not framed as a shutdown or a signal of financial distress. In plain terms, Deribit is not closing and is not saying it lacks funds — it is changing one reporting practice: the daily public snapshot of its reserves.

Why the Coinbase Custody Move Changes the Reporting

Deribit says it has moved most client assets to Coinbase. Coinbase now holds those funds under its own custody arrangements, as described in the company's institutional FAQ pages for Deribit.

When a third party such as Coinbase holds the assets, Deribit can no longer point to its own wallets for a daily public tally. The custody move is presented as the direct reason the daily updates are ending. The arrangement also reflects a broader industry pattern in which crypto firms increasingly rely on regulated third-party custodians rather than self-custodied wallets, a shift reinforced by regulatory expectations in major jurisdictions.

Coinbase has been expanding its Deribit relationship on the institutional side. It has already opened regulated Deribit options to U.S. institutions and detailed a 30-minute force-settlement process for Deribit positions. The custody transfer fits within that broader integration, which followed Coinbase's announced acquisition of Deribit — a deal that positioned Coinbase to absorb one of the largest crypto options venues by volume.

What This Means for Users and Trust

Proof-of-reserves reports are widely used to build user confidence. They allow customers to verify, on a regular basis, that an exchange appears to hold enough assets to back what it owes them. Ending the daily public version removes one straightforward way for users to check that backing day to day. This can raise questions about how asset coverage will be monitored going forward, even where no wrongdoing is alleged.

Reporting frequency also matters for perception. A shift away from daily updates can change how the market interprets an exchange's transparency, regardless of whether the underlying funds are safe. In this case, transparency is effectively being redefined: instead of Deribit publishing its own wallet attestations, verification now depends on the custody disclosures and regulatory obligations of Coinbase as the holding institution.

For a regular crypto holder, the practical takeaway is straightforward: if you rely on public reserve reports for confidence in where your funds sit, note that Deribit's daily version is going away and that Coinbase now custodies most of those client assets. Watch the official channels of both companies for details on how reserve information will be shared going forward.

Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.