CryptoQuant Names the Most Transparent Exchange for Reserves

KuCoin has received the highest proof-of-reserves (PoR) transparency score among major crypto exchanges, according to CryptoQuant’s latest annual Exchange Leader report.

The findings placed the Seychelles-based trading platform ahead of several larger rivals in a category that many traders view as central to assessing exchange solvency.

Report Ranks Exchanges on Reserves and Trading Activity

The report, which reviewed exchange performance across trading volume, reserve disclosures, and derivatives activity during 2025, shows KuCoin earning a PoR transparency score of 96.7 out of 100, the highest in the dataset.

KuCoin’s score reflects a monthly proof-of-reserves framework that allows users to verify their balances using Merkle-tree inclusion tools. The exchange also publishes wallet addresses and receives third-party attestations from security firm Hacken.

CryptoQuant said that the exchange had sent out more than 39 monthly reserve reports in a row, with the most recent one being on February 6, 2026. The reserve ratios for the assets that were made public were above 100%.

Bybit ranked second on the transparency scale with a score of 93.2, also supported by regular PoR disclosures and Hacken attestations. Kraken is placed in the A tier as well, though its quarterly reporting cycle reduced its score compared with the monthly reporting cadence of KuCoin and Bybit.

Meanwhile, larger exchanges scored lower in this category, with Binance receiving a score of 75.2, reflecting broad wallet disclosures and user balance verification tools but no full independent audit covering the exchange’s entire balance sheet.

Coinbase ranked much lower, with a score of 44.3, mainly because it does not publish comprehensive wallet address mappings or provide on-chain verification for customer balances.

The transparency ranking forms one component of CryptoQuant’s Exchange Leader Index, which measures platforms using six pillars: trading volume, reserves, proof-of-reserves transparency, trading mix balance, volume growth, and reserve growth. In the overall index, MEXC, Binance, and Bybit held the top three positions for 2025.

Derivatives Trading Dominates Exchange Activity

The report also examined trading patterns across major exchanges and found that most large platforms now record the majority of activity in derivatives markets rather than spot trading. MEXC, Bybit, Bitget, Binance, Gate, and Coinbase generated 70% to 90% of their volume from perpetual futures contracts.

However, KuCoin sits among exchanges with a more balanced mix between spot and derivatives trading. CryptoQuant placed it in a group with HTX and Kraken, where both segments contributed significant volumes rather than one dominating the other.

In overall trading size, Binance is still the largest exchange, processing about $32.4 trillion in annual trading volume during 2025. About $25 trillion of that amount came from the derivatives markets, and about $7 trillion came from spot trading.

Growth across the industry varied widely, with Gate recording the fastest expansion in derivatives activity, as perpetual futures volumes increased by more than 400% year over year. Coinbase also posted large percentage gains after completing its acquisition of Deribit and introducing Solana-based DEX trading, while MEXC nearly doubled its spot trading volumes during the same period.

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