Institutional-level trust issues have always been a pain point in the crypto market. Primus Labs, in collaboration with Succinct Labs, has recently made new progress in this area—they have jointly developed a reserve proof solution based on zero-knowledge proofs.

In simple terms, it uses cryptography to enable exchanges, stablecoin issuers, and asset custody institutions to prove that their reserves truly exist without revealing specific account information or sensitive data. The technical solution combines zkTLS to obtain off-chain verified data, and then uses the SP1 verifiable computation framework to complete the entire verification process.

The significance of this solution lies in allowing users and regulators to confirm assets are indeed in reserve through cryptographic methods, enhancing transparency and security across the ecosystem. Especially during a time when exchange compliance and user asset security are highly prioritized, such innovations are expected to become an important infrastructure for institutional applications.