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Mumbai-based crypto startup CoinDCX released its proof of reserves, showing a total holding valued at Rs 3,507 crore ($420.92 million) as of May 17, 2024—a 2.6X increase from November 2023.

“For every order placed by users, CoinDCX actually buys or holds crypto assets. We do this through an order placement system that ensures that assets bought by users are placed 1:1 under vaults on/off-chain, particularly in warm/cold wallets,” Sumit Gupta, Co-founder at CoinDCX, said in a statement.

Out of the total reserves, Rs 918 crore ($110.21 million) was kept in cold wallets, and Rs 2,590 crore ($310.71 million) was held on the blockchain, the company said.

A cold wallet refers to an offline storage method for cryptocurrencies, typically in the form of hardware devices. This isolation from the internet ensures that the wallet is immune to cyberattacks.

Unlike Coinswitch, which holds its reserves in a mix of Crypto and INR, CoinDCX holds all of its reserves in stablecoin Tether (USDT), which is pegged to the US dollar.

In the last edition of the proof of reserves released in November 2023, CoinDCX reported $159.11 million worth of holdings (Rs 1,326 crore as of exchange rates on May 24, 2024).

Last week, Bengaluru-based crypto platform CoinSwitch released the third edition of its proof of reserves (POR), showing total holdings of Rs 3,497.22 crore, including cryptocurrencies and Indian Rupees (INR)—a 79.8% increase from July 2023. User holdings were at Rs 2,774.10 crore.

Proof of reserves is a verification method used by crypto platforms to demonstrate that they hold sufficient assets to cover all user balances.

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Crypto unicorn CoinDCX turns profitable, earns Rs 28 Cr in FY23 as it curbs expenses

In January, CoinDCX announced it had earmarked $1 million to facilitate crypto asset transfers for investors from non-Financial Intelligence Unit (FIU) compliant offshore exchanges. The funds were utilised to provide a 1% bonus on deposits made on the platform between January 9 and 18 from foreign exchanges.

CoinDCX is a cryptocurrency trading platform founded in 2018 by Sumit Gupta and Neeraj Khandelwal. It is backed by global investors including Pantera, Steadview Capital, B Capital Group, Bain Capital Ventures, Coinbase Ventures, and others.