BitGo is now providing its custody services to India's largest volume of trade cryptocurrency exchange, CoinDCX.
The security plan for the Indian crypto sector
BitGo started storing cryptocurrencies held by CoinDCX last week with the aim of ensuring that resources are kept "safe and secure". Custody services extend to deposits in the stock exchange lending sector, known as DCXLend.
Funds deposited are protected in the event of theft or attack by hackers from BitGo's $ 100 million insurance coverage, the companies said. The policy is provided by a union of insurers within London's secular Lloyd's insurance market.
CoinDCX will use the omnibus or mixed version provided by BitGo, and separate cold and hot wallets, with two-factor authentication on all accounts. “CoinDCX has taken another step forward in consolidating our position as a trusted brand.
With BitGo's custody services, we want to secure the use of cryptocurrency in India, "said Sumit Gupta, CEO and co-founder of CoinDCX in the announcement. According to BitGo CEO Mike Belshe, the company processed over 20% of the bitcoin transactions of the time last year, which means that a sizable share of all online transactions go through its services.
After the Indian Supreme Court ruling in favor of cryptocurrencies, India is entering a cryptographic "renaissance"
Following a recent Supreme Court ruling that lifted the ban on the Indian central bank from offering banking services for cryptocurrencies, CoinDCX said it saw a rise in trading volumes of up to 47% in the first quarter of 2020, while registrations from users have increased 10-fold.
Weeks after the ban was lifted, CoinDCX raised $ 3 million in a Serie A event joined by the investment Bain Capital and Polychain Capital, as well as HDR Global Trading, owner of BitMEX.
With the local cryptocurrency industry now open again, investors and major exchanges have watched the moves in India. Billionaire venture capitalist Tim Draper said that India is entering a cryptographic "renaissance" and that it is looking for adequate investments in the nation.
And trading platforms like Binance and Kraken have both indicated plans to expand into that potentially huge market. Binance and its affiliate in the local WazirX stock exchange have launched a $ 50 million blockchain fund to boost local startups less than two weeks after the Supreme Court decision.
"With the recent increase in trading volumes on Indian exchanges, the need is the professionalisation of funds in the cryptocurrency market in a secure line," said Pete Najarian, general manager of revenue, BitGo. "As a custodian of CoinDCX, BitGo will provide its users with added value and security when investing in cryptocurrencies."
