BitGo announced on May 14 that it has begun storing digital assets held by the crypto exchange CoinDCX last week, with the aim of ensuring the assets are kept “safe and secure.” The custodial services provided by BitGo extend to deposits at the exchange’s lending arm, DCXLend. The company said that the custodial funds are protected in the event of a hack or theft by BitGo’s $100 million insurance coverage. The policy is rendered by a syndicate of insurers within the centuries-old insurance marketplace, Lloyd’s of London.
“We want to make crypto utilization in India, safe and secure.”
Sumit Gupta, CEO and the co-founder of CoinDCX, said that they had taken yet another step in consolidating their position as a trusted and secure brand in the country. With the custodial services of BitGo, CoinDCX wants to make crypto utilization safe and secure in India, the CEO added. BitGo processed more than 20 percent of bitcoin transactions last year, meaning a sizeable share of all on-chain transaction pass through its services. CoinDCX had raised $3 million earlier this year after Supreme Court’s historic decision.
At the rise of unprecedented growth in cryptocurrency use in India, it is of utmost importance to provide users with the highest level of security measures to protect their funds.#TryCrypto
— Sumit Gupta (CoinDCX) (@smtgpt) May 14, 2020
Trading volumes on CoinDCX increased by 47% in the first quarter of 2020.
The Supreme Court of India, in a historic decision, revoked the banking ban on the country’s crypto industry. The decision was the result of a long-fought battle between the crypto community of India and the Reserve Bank of India. Since the Supreme Court’s decision, CoinDCX witnessed an increase in trading volumes by up to 47% in the first quarter of this year, while user signups were up ten times. A few weeks after the ban lifted, the crypto exchange raised $3 million in a Series A round participated by investment firms Bain Capital and Polychain Capital, as well as BitMEX-owner HDR Global Trading.
Binance and its Indian subsidiary WazirX also launched a $50 million blockchain fund to boost local startups a few after the court’s decision.