Coinswitch reveals surplus balances, holds higher holdings than user accounts
CoinSwitch revealed the second edition of its proof of reserves, which displays that the company holds higher crypto assets and INR balances than its users.
Demonstrating transparency and verifiability of the platform’s claimed assets, CoinSwitch, India’s largest crypto-investing platform, today announced the 2nd edition of its proof of reserves (POR). Achieved through an independent review and on-chain validation, the review showcases the company's overall holdings of Crypto and INR balances (Indian Rupees) higher than those of customers’ holdings of Crypto and INR balances.
The INR equivalent value of the total holdings of CoinSwitch, including crypto and fiat, is INR 1944.8 crore and user holdings, including crypto and fiat, with CoinSwitch stands at INR 1431.30 crore. According to the proof of reserves, CoinSwitch maintains a holdings ratio of 1:1 or more (A ratio of 1:1 or higher means the platform holds all user assets and fiat balances, allowing users to redeem or withdraw them at any time).
In the words of Ashish Singhal, Co-founder and CEO, CoinSwitch, “As the largest crypto platform in the country, transparency is at the core of our values, and we take our responsibility toward all stakeholders very seriously. This led us to be the first of the crypto organizations in the country to announce POR last year.” He added, “Through an independent review of our holdings and on-chain validation via our crypto wallet addresses, we ensure there are no blind spots, providing our users with complete visibility into our holdings.”
The review was carried out as per the standards prescribed by the Institute of Chartered Accountants of India (SRS 4400) on March 31, 2023, which is the closing day of the financial year 2023.
The POR findings verify:
- CoinSwitch’s total holdings are greater than its users’ assets. The INR value of the total holdings, including crypto and fiat, of the users is Rs 1431.30 crore; the INR value of the total holdings of CoinSwitch, including crypto and fiat, is Rs 1944.8 crore.
- CoinSwitch maintains a holdings ratio of 1:1 or more. This ratio is even higher in some cases: For USDT, the ratio is 12.8:1; for BTC, it is 1.8:1; and for ETH, it is 1.03:1. The higher ratio is on account of CoinSwitch’s own crypto assets.
- CoinSwitch’s cash and cash equivalent balance are 6.79 times the INR balance of its users. The higher ratio is on account of CoinSwitch’s own INR balance.
Further, with the public crypto wallet addresses, users can use blockchain explorers to get a real-time view of CoinSwitch’s crypto holdings. CoinSwitch employs industry-grade solutions to hold users’ assets safely and securely.
