Dominating the crypto news scene in India today was the announcement that Cryptocurrency custodian BitGo will provide its services to Indian exchange CoinDCX, offering secure storage and partial insurance for assets traded on the platform, CoinDCX announced today.
US-based BitGo, a firm claiming to process over 20% of all Bitcoin (BTC) transactions, provides an insurance policy covering up to $100 million in value through a syndicate of Insurers in the Lloyd’s of London and European Marketplace.
CoinDCX apparently already began transferring its assets to BitGo’s wallets last week.
With BitGo Custody, all cryptocurrencies on CoinDCX will be secured in omnibus and segregated hot and cold wallets with two-factor authentication for all accounts.
A fraction of funds traded on the CoinDCX exchange will be protected by BitGo’s $100 million insurance policy, including user assets held on CoinDCX’s lending service, DCXLend, and cold assets and funds.
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“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,” Pete Najarian, chief revenue officer at BitGo, said in a statement.
“As the custodian of CoinDCX, BitGo will provide its users with added value and assurance when investing in cryptocurrencies,” he added.
Latest developments at BitGo
BitGo already provides custody services to multiple crypto exchanges including Bitstamp and LGO Markets. This February, it set up two separate crypto custodies in Switzerland and Germany and launched an institutional-level crypto lending service in March.
BitGo has also onboarded commercial insurance broker Woodruff-Sawyer & Co to enable clients to insure their assets more flexibly and purchase an excess limit beyond its $100 million policy.
CoinDCX’s strong growth after banking ban in India
The news of BitGo as the custodian of CoinDCX follows the exchange’s second anniversary. CoinDCX announced a 47% growth in trading volumes in the first quarter of 2020, a 10 times growth in user signups on the exchange and a 150% growth in daily active users after the lifting of an industry-wide banking ban by the Reserve Bank of India.