Our Proof of Reserves

Our Proof of Reserves

CoinSwitch transformed the crypto experience in India by simplifying the process of buying and selling crypto for millions of Indians. Our app provided a user-friendly interface that was highly appreciated by our users. Over 19 million Indians now trust CoinSwitch for their crypto trading.
We understand that simplicity is key, especially for retail users that make up the majority of our user base. Creating wallets, managing seed phrases, and ensuring good security practices can be a demanding task. We recognized the need for a safer and simpler experience for our users and thus employed industry-grade solutions to safely and securely hold our users’ crypto assets.
To demonstrate our robust practices and our commitment to protecting user funds, we published the key findings of an independent Proof of Reserves review on November 17, 2022—making CoinSwitch the first in India to do so. Additionally, we provided users with the ability to verify our holdings by making our wallet addresses public.
We pledged to continue this practice of transparency and trust-building. As part of our ongoing efforts, we are now publishing the second edition of our Proof of Reserves. The latest edition confirms that CoinSwitch holds sufficient crypto assets and fiat balances (Indian Rupees) to cover all user redemptions. The review verifies that we maintain a ratio of 1:1 or higher for both crypto and INR balances. This means that even in extreme scenarios, all CoinSwitch users can fully redeem their assets.
The independent review of our crypto and fiat holdings was conducted by a qualified chartered accountancy firm in accordance with the standards prescribed by the Institute of Chartered Accountants of India (SRS 4400) for the status of cryptos and INR held as on March 31, 2023—the closing day of the financial year. The findings of this report, along with an updated list of our wallet addresses, are being published in this blog.

What’s POR?

  • Proof of reserves (POR) establishes transparency and verifiability of a crypto platform’s claimed assets. This is achieved through an independent review and on-chain validation.
  • The independent reviewer verifies the platform’s crypto and fiat holdings (Indian Rupees) and compares them with users’ assets and balances.
  • 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.
  • CoinSwitch commissioned a qualified firm to conduct our second POR. The independent review was carried out on March 31, 2023.
  • The POR aligns with the end of the financial year and adheres to the standards prescribed by the Institute of Chartered Accountants of India (SRS 4400).
  • To confirm the findings, users can cross-reference our wallet addresses shared in this blog post using blockchain explorers.

Holdings Ratio of 1:1 or More

CoinSwitch’s total holdings are greater than its users’ holdings (numbers as on March 31, 2023, 24:00 hrs IST)
CoinSwitch maintains a holdings ratio of 1:1 or more for crypto and fiat balances (Indian Rupees)
  • CoinSwitch’s total holdings are greater than its users’. 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.
  • That is, 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 assets.
  • CoinSwitch’s cash and cash equivalent balance is 6.79 times the INR balance of its users. The higher ratio is on account of CoinSwitch’s own INR balance.

No Blind Spots: Our CEO Answers All Your Questions

We leave no blind spots, says Ashish Singhal, co-founder and CEO, CoinSwitch

Q. Could you give a summary of the POR review?
Ashish Singhal: Proof of Reserves or POR is a process to verify that a crypto platform holds the assets it claims to. It establishes transparency and gives users the confidence that the platform can be trusted.
This is CoinSwitch’s second such POR review. The review was carried out as per the standards prescribed by the Institute of Chartered Accountants of India (SRS 4400) for the status of cryptos and INR held as on March 31, 2023, which is the closing day of the financial year 2022–23.
The review found that CoinSwitch’s total holdings are valued at Rs 1,944.8 crore, higher than the value of our user holdings, Rs 1,431.30 crore. Further, CoinSwitch’s cash and cash equivalent balance is 6.79 times the INR balance of our users.
This is to say, every crypto that a user has bought on our platform is fully accounted for and can be redeemed, that is sold, at any time. And every rupee that a user has kept with us is fully accounted for and can be withdrawn anytime.
As you can see, our holdings ratio is much greater than 1:1. Which means, CoinSwitch holds significantly more assets and cash than those of our users in our custody.
Q. What are the exchanges that CoinSwitch work with? Are user assets held in them?
Ashish: CoinSwitch is an exchange aggregator. That is, CoinSwitch pools liquidity from multiple exchanges to provide users with a seamless experience to buy and sell crypto in Indian Rupees. On CoinSwitch PRO, users can select from multiple exchanges to make a trade, as well as trade across them to make use of the arbitrage opportunities.
The exchanges we work with include CoinSwitchX, WazirX, CoinDCX, and Binance. On CoinSwitch PRO, our users can choose between CoinSwitchX and WazirX, and trade across them.

As a best practice, CoinSwitch holds nearly 85% of assets on custodial wallets, and the remaining on exchanges

As far as asset holdings are concerned, as a best practice, we hold nearly 85% of the crypto assets on custodial wallets; only the remaining is held on the exchanges to execute fast trades. The custodial wallets we use are provided by institutions of international repute, and access to these wallets is stringently managed through multi-party computation.
Further, the assets held on exchanges are majorly concentrated on CoinSwitchX, and less on other third-party exchanges. This allows us to maximize our ability to execute transactions in real-time and minimize counterparty risk.
Q. Can a user independently verify the findings of the report?
Ashish: Yes. CoinSwitch’s POR report brings together the reliability of proven standards and the transparency of blockchain technology. Alongside the review of our holdings, we are also making public our wallet addresses. While our wallet addresses have been public since January 2023, we have refreshed this list in this blog. The assets held in these wallets can be verified using blockchain explorers, giving users an up-to-date view of the holdings.
Q. Are there any liabilities on users’ assets?
Ashish: No, there are none. We do not reinvest or leverage our users’ assets. The assets of our users are theirs; not ours to be considered in our balance sheet. CoinSwitch simply holds on them on their behalf to simplify their crypto experience. Users can redeem their assets at any time of their choosing.

Wallet Addresses and Latest Crypto Holdings

The addresses of our major wallets are provided below. CoinSwitch’s total crypto holdings, including user and company assets, at the time of publishing this blog, i.e. July 26, 2023, 24:00 hours IST, is Rs 1419.35 crore. Of this, the assets held on the wallets listed below, as of July 26, 2023, 24:00 hours IST, is ₹1174.73 crore.
At the time of evaluation (July 26, 24:00) this accounted for approximately 83% of all user assets in our custody. The remaining are held on exchanges, and the value of these assets is ₹244.62 crore.

  • Total value of crypto assets on custodial wallets (July 26, 24:00): ₹1174.73 crore.
  • Total value of crypto assets on exchanges: ₹244.62 crore.
Coin Address
1INCH 0x4cD3aa96836c133c9B9f27daFa7baF744D57404d
ADA addr1vxk4xm6s59djcnfuvan0vzdl46vg4rpl5skgyzsq9zymmesg0wg36
ADA addr1q8vwekxghrkv2k0lsuaeqjh705c4lffjzke2s3dpphqv476mq6q0j58hqvna569a4mjp33nptddckf7snfg56m85kmjq0vsvpl
ATOM 0xceAE7673553c90d0a3cd1A494dA35eDe63910cBF
AVAX 0xceAE7673553c90d0a3cd1A494dA35eDe63910cBF
BCH bitcoincash:qz7mgzl0q0t4y4jtgqekwf4lt937xpx5juyshvxe90
BTC 1Jmih4f2hMT5b1dmKzTmbhngiUYq41F3hD
BTC bc1q3jnwt4ucn7f8y838nchams0z6ya03pmuqg7eam
BTC bc1q0prckeamvlz62yl0aynuswj02hmpc4gy4gxtfg
BTC bc1q4h32zclp9f3xtufgcrfa5fajnwanuh7zcumz88
DASH Xb1ukD82qoMFsVsgFZZQYbSbqwiDQH6z2z
DGB DQZmr7s6Q4tVBSYDAMxDp8V6DdkenzV6tQ
DGB DAsSHqr5HS8c5Pzx3FtNNihu53Pbm5u8kG
DOGE DAs2wHq98dG7RWf1Cc9Qi8RjtVmqfKuQG1
DOGE DKt9keLeioh4Apog13f5rptCmkBZfAmJs4
DOGE D5DTiktM89KuMbrCKdW3x2eT9RQ5xXJRgc
DOT 1MrCTEb7H4jyx3JDPESin4eFB7y86xmjyaVw7vVjW3evAAm
DOT 16JdCTM4A3iamtiSKEa4XMz6YjRkTD8cwtubFCimeXM2V8Z1
ENJ 0xE627b3e5591a713E3c23aF6fc4eBa2F313FdF489
EOS o3vxo3ymgihd
ETC 0x6E55da1BDdc6D5Bf6401b856D553b966168D5da3
ETH 0x252D1375CA8F8A4CA59F1e7635F8Fd7C4A78031E
ETH/ERC20 0xceAE7673553c90d0a3cd1A494dA35eDe63910cBF
ETH/ERC20 0x3506A6ccc61d4D2046B79969020a5aF79010b4a6
ETH/ERC20 0x294B9B133cA7Bc8ED2CdD03bA661a4C6d3a834D9
FIL f1scthz26y5uh3kagn2boikg625hdnrury7sd3tdq
FIL 0xceAE7673553c90d0a3cd1A494dA35eDe63910cBF
NEO NY6nn5m6g8Q23yDJ1SuKy1gsAKGxPfrwgU
GAS NY6nn5m6g8Q23yDJ1SuKy1gsAKGxPfrwgU
ICP ecd361c1646c902e0f00dd579ad0829b00ad7e411e9dd644b6338170d1cf3585
ICP ba727db0fe694ab0479779dc1e51f2d5efcdb221cb123267632433d11489dca1
LTC LfioEhF1A5d3KDuwhFzSDuoF4yPSkw1hZ2
LTC LQrAumff4hJkarQ2X1p1gVn54EaQeq2WQ6
LTC LM5abXL8X9Cwzsu4ikzxNk1rAX4T2LHKcm
LUNA2 terra1mmlh4ard48whr86cg0uuxrgj2g3k0jhns56e6u
MANA 0x250b05e1E0dd20A876E369a16441E714e3d9f436
MATIC 0x7D3f7A3842f18873C769a42f92F51F091954211c
ONE one107zjryqkyju8rmp4jmca0p8r34lrvau4kyfzky
SHIB 0x17a678C673FbB5B2f3294ef35e18c0Ef8cC3E64F
SOL DxgeLHWeVce5mtEUEjGXG7rzkxrfxGXHVdKX8dfU81NZ
SOL 4TnvWpsUi6PJhzq8jPLFXaEHjqyRvDdPrB9A8WKUbBgz
SOL F4G8vnGSnqjrPGXXeSfhXjWyQJCRrjnkyBuyDqsvxbLr
SUSHI 0xc0EB873cd81d47d290Ff7b6AD49280f6fD9cfB2B
TFUEL 0x7f8521901624b871ec3596f1d784e38d7e367795
THETA 0x7f8521901624b871ec3596f1d784e38d7e367795
VET 0x6091B43782a5C39DBaD3F62Cc68ed3E724048405
WAVES 3PGwB4V2xj7anCg2s3pYT386Fmf3XTqdFUG
XNO nano_1q6yanbnmjo943ts3pgbq1dqee99gm53mnm9f3pyu3dnysk9i7m9kk1d4jmf
XRP raJPB1A1HzeAMjEPRbRupYCHBLmf558m61
XRP rnLJ3LBAUKs2Tr6TAh5Ydk9G4qvPrTbZAv
XTZ tz2Pk8zG34btfyd1hDXFuLpetLyDNX7GpCfu
ZIL zil13vzk885vxzugakyfd7a63rnk9t8lyr6n9xrf37
BTC 1DphY7yD5yf7S9EyVoaNbPyTPdr8XrucaK
NEAR 77aa903d2b9734bf4a3857bd1306660c8053dcaa4a944283072e70fe8db5c23f
KSM G9HxjubAsnWHTkKiUKyb8v8A7yj1z2hQsvTa27dQvMJrCmT
LTC LPr9juAVYULTjL4kSRizxNqjmyPwDZ4Pek
NKN 0x83d470c6071D9E50969757d801a54E4Cbe6a6d60
AVAX 0x3DDc849dc9D3f866FdCe69C53a7d0033DaE4603A
AXS 0xC44F21A9C9920dEc62861d6d51dfA7D6ff60EACB

Full POR Report

Download the full POR Report

Share this:

Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user’s own risk.

Build your crypto portfolio on the
CoinSwitch app today

Scan the QR code below or find us on Google Play
Store or Apple App Store.

Build your crypto portfolio on the
CoinSwitch app today

Scan the QR code below or find us on Google Play Store or Apple App Store.