Crypto exchange platform CoinSwitch on Thursday announced its third edition of proof of reserves (PoR) data, stating that the company’s overall holdings of crypto and Indian currency balances were higher than those of its customers.
The equivalent value of CoinSwitch’s holdings in crypto stands at Rs 3,497.22 crore, whereas the holdings of its users in the same basket stand at Rs 2,774.10 crore, it said.
PoR is the ‘proof’ that a financial entity has the holdings it claims to have. A PoR audit is published by crypto firms to inform customers that a custodian or a crypto platform is adequately liquid, and users can withdraw their funds at any time. It provides transparency on the user’s and crypto exchange’s holdings.
In its second edition of the PoR published in July last year, the equivalent value of the crypto firm’s holdings in crypto and Indian currency stood at Rs 1,944.8 crore, whereas the holdings of its customers stood at Rs 1,431.30 crore.
The company said it maintains a holdings ratio of 1:1 or more, meaning that it holds all user assets and fiat balances, allowing customers to redeem or withdraw assets at any time.
“Trust is the foundation of every successful business relationship. At CoinSwitch, we understand that earning and keeping the trust of our users is paramount. Our third proof of reserves demonstrates our commitment to transparency and accountability—giving our customers full confidence that their assets are safe and secure with us,” said Balaji Srihari, business head, CoinSwitch.
Founded in 2017, CoinSwitch has a base of over two million users.
First Published: May 23 2024 | 7:17 PM IST
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