Cryptocurrency custodian BitGo will provide its services to Indian exchange CoinCDX, offering secure storage and partial insurance for assets traded on the platform.
BitGo — a United States-based firm that claims 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.
CoinCDX 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.
In a statement, Pete Najarian, chief revenue officer at BitGo, noted that “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.”
BitGo already provides custody services to multiple crypto exchanges including Bitstamp and LGO Markets. This February, it established 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 (in partnership with Paragon Brokers) to enable clients to insure their assets more flexibly and purchase an excess limit beyond its $100 million policy.
The current climate for crypto in India
Earlier this year, India’s Supreme Court overturned a longstanding ban on banks’ services to crypto-related firms, promising to usher in a more positive climate for the domestic industry.
In an interview with Cointelegraph, CoinCDX co-founder and CEO Sumit Gupta pointed to the recent influx of foreign investments into the cryptocurrency…