CoinSwitch Report Says Its Reserves Exceed Customer Holdings, Can Cover All User Redemptions

India’s CoinSwitch crypto exchange published the third edition of its Proof of Reserve (PoR) on Thursday, May 23. The report claimed that the worth of total consumer holdings on CoinSwitch, including both cryptocurrencies and INR, stood at Rs. 2, 774.10 crore as of March 31, 2024. The exchange also disclosed that its total holdings now amounted to Rs. 3,497.22 crore, ensuring it held sufficient reserves of cryptos and INR to cover all user redemptions. The company said it wished to assure its user community that they can fully withdraw their crypto assets at any time.

Out of CoinSwitch’s total crypto holdings reported at Rs. 3,497.22 crore, 26 percent was Bitcoin, eight percent was Dogecoin, eight percent was Shiba Inu, seven percent was Ether, five percent was Solana, and the remaining 46 percent accounted for other cryptocurrencies, the report said.

The total customer holdings with CoinSwitch as of March 31, 2024, has grown by 93 percent as compared to the previous edition of the proof-of-reserves report, that was released in July last year.

“We understand that earning and keeping the trust of our users is paramount. Our third POR demonstrates our commitment to transparency and accountability — giving our customers full confidence that their assets are safe and secure with us,” Balaji Srihari, Business Head, CoinSwitch, said in a statement commenting on the development.

The exchange, additionally, has made an updated list of major crypto wallet addresses publicly available to let users verify the findings. As part of the update, CoinSwitch said it held over 85 percent of cryptos on custodial wallets.

This trend of releasing proof-of-reserves report picked pace in the crypto sector two years ago after promising crypto projects like FTX exchange, collapsed due to mismanagement of funds, leaving investors high and dry.

The fresh report from the exchange further claimed that the verification of CoinSwitch’s crypto and INR holdings was conducted as per the standards prescribed by the Institute of Chartered Accountants of India.