Digital Assets: Indian Crypto Exchange CoinDCX Appoints BitGo As Custodian
Bitgo will be the custodian for cryptocurrencies held on the exchange as well as deposits on its lending service DCXLend.
CoinDCX, which claims to be India’s largest and safest crypto exchange and liquidity aggregator, will entrust its crypto assets to the custody of U.S.-based BitGo. Note that BitGo has in place a US$100 million insurance policy cover for crypto assets. It is provided by a syndicate of insurers in the Lloyd’s of London and European Marketplace. (Aithority)
However, the CoinDCX announcement said that BitGo’s insurance policy would cover only “a fraction of the funds traded on the CoinDCX exchange.”
BitGo claims that it processes over a fifth of all bitcoin transactions.
Safe, secure and simple crypto adoption
Sumit Gupta, CEO, and Co-founder of CoinDCX said regarding the arrangement with BitGo: “The purpose of the #TryCrypto initiative is to promote widespread crypto adoption, which includes ensuring users that their funds are in safe hands. CoinDCX has always maintained that crypto adoption should be safe, secure, and simple for everyone. CoinDCX has taken yet another stride in consolidating our position as a trusted and secure brand. With the custodial services of BitGo, we want to make cryptocurrency utilization in India, safe and secure.”
BitGo custody services already in motion
CoinDCX has already commenced the transfer of digital assets to BitGo’s wallets effective last week. Cryptocurrencies in all CoinDCX accounts will be secured in BitGo Custody in omnibus and segregated hot and cold wallets with two-factor authentication.
Volumes spurt on CoinDCX
According to Gupta, trading volumes on CoinDCX spurted by 47% in the first quarter of 2020. Further, there was a 10-fold growth in user signups and a 150% growth in daily active users.
In March, the Supreme Court of India struck down the Reserve Bank of India’s blanket ban on Indian banks’ with crypto-based businesses. The court said the ban was “disproportionate.”
The decision seems to have lifted some of the gloom that descended on Indian crypto businesses after the RBI’s ban.
Pete Najarian, chief revenue officer at BitGo, noted that “with the recent uptick in trading volumes on Indian exchanges, the need of the hour is for professionalization in the form of fund security in the crypto market.”
CoinDCX has received investments from Polychain Capital, Bain Capital Ventures, and BitMEX operator HDR Global Trading.
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