South Korea's largest cryptocurrency exchange Upbit has released its asset audit report for April 2026, conducted by Sung Hyun Accounting Firm. The report reveals that Upbit's digital asset holdings amount to 103.13% of customer liabilities, while cash and cash equivalents stand at 110.35% of customer liabilities. These figures significantly exceed the 100% threshold, reinforcing the exchange's commitment to reserve transparency.
Scope and Methodology
The audit covered a total of 307 digital assets and related funds, spanning from March 29 to April 20, 2026. Sung Hyun verified Upbit's asset records, on-chain balances, and liability accounts through independent cold/hot wallet address checks, third-party data cross-referencing, and cash flow model testing. The methodology ensures a robust assessment of reserve adequacy.
Key Ratio Analysis
The two core metrics—103.13% digital asset coverage and 110.35% cash equivalent coverage—both surpass the industry benchmark of 100%. The high cash coverage ratio is particularly notable, indicating strong liquidity management. In a scenario of simultaneous user withdrawals, Upbit would have sufficient assets to meet all obligations.
Industry Context
Following the FTX collapse, global exchanges have intensified efforts to demonstrate proof of reserves. Upbit's regular audits have become a standard practice under South Korea's financial regulatory framework. This audit report not only serves local users but also sets an example internationally. Upbit's parent company, Dunamu, has consistently maintained a “100% reserve” policy, and this data provides concrete evidence.
User Confidence and Outlook
As of July 2026, Upbit remains the highest daily trading volume exchange in South Korea. The release of this audit during a volatile market period is expected to boost user confidence and alleviate fears of run risk. Upbit plans to publish similar quarterly audits and is exploring real-time proof-of-reserve mechanisms to further enhance transparency.