Solvency Attestation

A solvency attestation is a formal statement, often provided by an independent accounting firm, confirming that an entity holds enough assets to meet its liabilities. Unlike a full audit, which is a comprehensive review of financial statements, an attestation focuses on a specific aspect of the company's financial condition at a point in time.

In the crypto industry, these are frequently used to validate Proof of Reserves reports. While they provide a higher degree of credibility than self-reported data, they are limited by the scope of the engagement and the quality of the underlying data provided by the entity.

Solvency attestations are a key component of the move toward greater institutional accountability, though they remain an imperfect solution compared to continuous, automated on-chain monitoring.