- HTX claims strong financial reserves, but most of its stablecoin holdings are out on loan.
- About 93% of HTX‘s Tether (USDT) reserves, worth around $1.6 billion, are currently loaned on Aave.
- HTX users can verify reserve assets with a tool that relies on addresses controlled by the exchange.
- Large portions of other reserves, like Ethereum and Bitcoin, are either lent out or held as tokenized derivatives.
- Justin Sun states high interest rates offered by HTX are funded by company subsidies, not organic yield.
Justin Sun, owner of the cryptocurrency exchange HTX, has defended the company’s financial reserves and promised users high yields on their deposits. HTX publicly shares a tool that lets users verify the status of its reserves and claims this process backs its fiscal strength.
A closer examination shows a significant portion of HTX‘s reserves are currently lent out. Specifically, nearly 93%—around $1.6 billion—of HTX‘s Tether (USDT) holdings are committed to the Aave lending protocol. According to details from their proof-of-reserves, users checking assets like Tron (TRX) will find that the reserves include both standard TRX and jsTRX, the latter being TRX already lent on another protocol, JustLend.
HTX has been churning a huge quantity of USDT through Aave, frequently depositing and withdrawing it, seeming to affect the lending rates in this market. Additionally, about 36% of HTX‘s Ether (ETH) reserves are currently lent on Aave, with roughly 60% held as staked ETH (stETH), a version of ETH locked up to earn rewards on the Ethereum network.
The status of some Bitcoin (BTC) reserves adds further complexity. The majority of HTX‘s claimed bitcoin holdings exist as TRON-based tokenized BTC, a product issued by another Sun-affiliated company, Poloniex. The article notes, however, that Poloniex has not disclosed where the bitcoin collateral for these tokens is stored.
Justin Sun has said in a public statement that the high interest rates offered on HTX are covered by company subsidies. High-yield rates are “100% subsidized by the group” and serve as a means to compete for users among exchanges, not from trading profit,” Sun explained.
According to the article, the mixture of reserve assets and lending strategies, while publicly verifiable, also leads to concerns about HTX‘s risk management and financial controls. Questions remain about the transparency and security of the assets backing user deposits, particularly when substantial portions are locked into third-party protocols or represented as tokenized products from affiliated companies.
For more detailed data and reserve verification, users can access the official HTX asset tool and further reporting is available at the linked sources.
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