Crypto Reserves

Definition ∞ Crypto reserves are holdings of various cryptocurrencies or stablecoins maintained by entities such as centralized exchanges, stablecoin issuers, or decentralized autonomous organizations (DAOs). These reserves serve to back issued digital assets, ensure platform solvency, or provide liquidity for specific operations. Their composition and transparency are critical for market confidence.
Context ∞ News reports frequently discuss crypto reserves, especially in relation to stablecoin stability and the financial health of centralized crypto platforms. Regulatory bodies increasingly demand audits and public disclosures of these reserves to protect consumers and maintain market integrity. The adequacy and composition of crypto reserves remain a subject of significant scrutiny, affecting investor trust.