Proof of Reserves & Bonds
Independent third-party attestation of the reserves backing USDest and the bond positions held by sUSDest.
Proof of Reserves & Bonds gives independent visibility into the assets behind both instruments. It is produced through an agreed-upon procedures engagement performed by an independent accounting firm.
Engagement status
No attestation engagement has been signed yet. Until one is, reserve balances and bond positions can be verified directly onchain through the Proof of Reserves dashboard and Contract Addresses.
Latest Report
Snapshot Date: — (first attestation pending) Independent Accountant: — (engagement pending) Engagement: Agreed-Upon Procedures
The first report will be linked here once the attestation engagement is signed.
What is independently tested
USDest reserves
- Confirming USDC balances held by the BasePositionManager (the reserve custodian) and any reserve wallets at the snapshot block
- Confirming tokenized T-bill fund holdings against the fund's transfer-agent or administrator records
- Recalculating reserve value against total USDest supply on Base
- Confirming that every USDest mint in the period is matched by a USDC deposit
sUSDest bond positions
- Confirming the ERC-3643 bond token balances held by the BondPositionManager at the snapshot block
- Reconciling those balances to the issuer register, or to the transfer-agent or paying-agent register, in the name of the Holding Subsidiary
- Documenting ISIN, issuer, face value, coupon rate, coupon frequency and maturity from the executed subscription documents and bond terms
- Viewing subscription settlement and coupon receipt transactions through a third-party block explorer, and comparing dates and amounts against the documents
- Recalculating the deposit and redemption share prices at the snapshot
- Confirming compliance with the reserve floor and per-issuer cap at the snapshot
- Documenting the most recent reported loan-to-value and valuation date for each bond's underlying collateral, as reported by the issuer
Findings are published at the individual position level in the report.
How the engagement works
The accountant obtains and inspects the executed documents and supporting records for each position in scope. Depending on the instrument, these may include:
- subscription agreements
- final terms or prospectuses
- securitisation compartment documentation
- paying-agent and custodian statements
- ONCHAINID claims issued for the BondPositionManager identity
- Holding Subsidiary constitutional documents
- schedules of onchain settlement and coupon transaction hashes
For reserves, the accountant inspects USDC and tokenized fund account statements and compares them to onchain balances and USDest supply.
Scope of the Report
Proof of Reserves & Bonds is based on an agreed-upon procedures engagement. The accountant reports findings from specifically defined procedures. The engagement is not a financial statement audit or review. It does not give an opinion on the credit quality of any issuer, the value of any underlying real estate, or the future performance of sUSDest.
The report should be reviewed for the complete scope, procedures, findings and limitations of the engagement.