CoinDCX, one of India’s leading cryptocurrency platforms, has announced the launch of Bharat Custody, a virtual digital asset (VDA) protection solution tailored specifically for the Indian crypto ecosystem. Designed to function as a third-party custody service, Bharat Custody aims to safeguard digital assets for Indian exchanges and VDA companies, providing a localized solution that aligns with the country’s regulatory framework.
The initiative was unveiled at Unfold 2024, CoinDCX’s flagship Web3 event. The company emphasized that Bharat Custody’s goal is to strengthen investor trust by addressing security concerns and adhering to compliance standards.
“With over 3 crore investors already engaged in India’s crypto ecosystem, there is a clear and urgent demand for a solution that builds trust and confidence at scale,” said Sumit Gupta, Co-Founder of CoinDCX. “Bharat Custody is designed to serve the entire industry, supporting all crypto exchanges and VDA companies, not just CoinDCX. Currently, no localised custody solution exists in the Indian market, creating a critical gap the industry must address collaboratively.”
Drawing Inspiration from Proven Models
Gupta compared Bharat Custody’s envisioned role to that of the National Securities Depository Limited (NSDL) in India’s capital markets, which provides centralized security and trust for investors. He highlighted that the custody service will be managed and hosted entirely within India, ensuring compliance with local regulations and offering a robust security framework.
CoinDCX has earmarked ₹50 crore for research and development, with the goal of rolling out the custody solution in the first half of 2025. The company believes that such an initiative is essential to bolster investor confidence and support the long-term growth of India’s burgeoning crypto industry.
Building Trust in a Growing Market
The Indian cryptocurrency ecosystem has seen exponential growth, with over 30 million investors participating in the market. However, the absence of a reliable and localized custody service has been a persistent challenge for the industry. CoinDCX’s Bharat Custody aims to bridge this gap by providing a secure and compliant infrastructure that caters to the needs of Indian investors and businesses alike.
By addressing these concerns, CoinDCX hopes to set a precedent for industry-wide collaboration and innovation, ensuring that the Indian crypto ecosystem remains secure and competitive on a global scale.