CoinSwitch releases proof of reserves, reveals $131.09 million in assets

Ashish Singhal, Co-founder and CEO, CoinSwitch

CoinSwitch has released its proof of reserves, which reveals that as of January 6, 2023, 8 am IST, it had $112.99 million, or Rs 933.83 crore in terms of value assets. This comes amid a debate where crypto investors have been calling for more transparency from exchanges.

“At the time of evaluation (January 6, 8 am IST) this accounted for 86.2% of all user assets in our custody. The remaining are held on exchanges, and the value of these assets as of January 6, 2023, 8 am IST is approximately $18.1 million, or Rs 149.62 crore,” the company said in an official blog post.

Coinbase-backed CoinSwitch has a total asset value on custodial wallets of approximately Rs 933.83 crore, and a total asset value on exchanges of approximately Rs 149.62 crore. CoinSwitch works with exchanges such as WazirX, CoinDCX, Binance, and its own CoinSwitchX platform.

The exchange also offers custodial services through Ledger, Coinbase Custody, and Fireblocks.

This development follows the collapse of the erstwhile second-largest global crypto exchange FTX, its token FTT, and subsequent bankruptcy, which sparked a debate about the need for exchanges to be more transparent.

In November, rival cryptocurrency exchange unicorn CoinDCX published its proof of reserves in partnership with Nansen.

In a subsequent announcement, CoinSwitch stated that INMACS, a consulting firm with expertise in assurance, taxation, regulatory advisory, and risk management, had determined that CoinSwitch's total holdings of virtual digital assets (VDAs) and INR exceeded those held on behalf of the users of its platform. The report was published by the exchange today.

“The total value (INR equivalent) of the users’ crypto in our custody at the time of the report was Rs 1,392.45 crore,” the company said in the blog post.

In a press statement, Ashish Singhal, co-founder of CoinSwitch said, “The past year has been turbulent—for the markets and the world in general. However, I believe that bear markets are the best time to slow down, think things through and build. And that’s what we at CoinSwitch did in 2022: We hunkered down and built. I'm excited to bring these products to you in 2023. As India’s largest crypto exchange, it is on us to build trust with our users by being more transparent. In 2023, we will aim to give you access to all information, good or bad.”

“This year we will go the extra mile to make our processes and systems crystal-clear for you. We are committed to building India’s best wealth-tech destination, and we can be the best only if you know it and believe in it,” he added.

You had questions. We’re here with answers on our proof of reserves, wallet addresses and more. Trust and transparency are of the highest importance for the crypto industry—now, more than ever before.

— Ashish Singhal (@ashish343) January 6, 2023

CoinSwitch rebranded as a wealthtech platform in December, unveiling a new logo and app design. According to Singhal, the company plans to launch at least seven new products by the end of next year, including fixed deposits, bonds, exchange-traded funds (ETFs), stocks, and mutual funds.