CoinSwitch's reserves total Rs 3,497 Cr, up 80% from last year

Bengaluru-based crypto platform CoinSwitch has released the third edition of its proof of reserves (POR), showing a total holding of Rs 3,497.22 crore, including in cryptocurrencies and Indian Rupees (INR)—a 79.8% increase from July 2023.

User holdings stand at Rs 2,774.10 crore, CoinSwitch said. The company said it has ensured that customer holdings in both INR and cryptocurrencies are maintained in a 1:1 ratio, sufficient for all user redemptions.

The assets held by PeepalCo, the parent brand of CoinSwitch, are in addition to these funds and are not included in this POR assessment, it clarified.

"Trust is the foundation of every successful business relationship. At CoinSwitch, we understand that earning and keeping the trust of our users is paramount. Our third Proof of Reserves demonstrates our commitment to transparency and accountability—giving our customers full confidence that their assets are safe and secure with us," said Balaji Srihari, Business Head, CoinSwitch.

In the previous edition of its proof of reserves report published in July of last year, the value of its reserves held in crypto and INR stood at Rs 1,944.8 crore. CoinSwitch released the first edition of POR in November 2022, weeks after the collapse of the crypto exchange FTX. At that time, the value of its reserves stood at Rs 1,392.45 crore.

These proofs are crucial for crypto platforms to demonstrate their solvency and liquidity, thereby providing users with confidence in the management of their assets.

This mechanism is particularly important in the context of decentralized finance (DeFi) where users entrust their funds to custodial institutions responsible for safeguarding these assets.