BitGo, a US-based digital asset services provider, becomes a custodian for CoinDCX, an India-based cryptocurrency exchange, and liquidity generator.
BitGo launched its first multi-signature wallet in 2013. Currently, the custodian supports over 100 coins and ample amounts of on-chain Bitcoin transactions. Basically providing security, compliance, and custodial solutions, BitGo estimates processing about 15% of all global Bitcoin transactions and access to over 200 cryptocurrencies.
On the other side, CoinDCX seeks to grow investment accessibility and access to cryptocurrency exchange services primarily for the Indian market.
CoinDCX already began transferring assets to BitGo’s wallets last week.
Indian digital asset market on the rise
While economies worldwide are suffering from a downward trend, aggravated by the continued Covid-19 crisis, digital assets are growing in popularity.
As Pete Najarian, CEO and Co-Founder of CoinDCX, highlighted:
“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.”
After a Supreme Court ruling overturned a ban on banks involved in cryptocurrency businesses by India’s central bank, investment and interest in digital assets continue to increase not only domestically but also internationally.
BitGo and CoinDCX partnership: each bringing something to the table
Whereas CoinDCX brings access to the Indian market and a wide customer base, BitGo offers additional security. Part of the funds traded by CoinDCX will be insured through BitGo’s $100 million USD insurance policy. This includes assets from CoinDCX’s lending service DCXLendas well. Policy coverage is provided by a syndicate of insurers in Lloyd’s of London and European Marketplace. In addition, BitGo will secure digital assets from CoinDCX with segregated hot and cold wallets and two-factor authentication for accounts. The partnership between BitGo and CoinDCX, therefore, brings significant benefits to both sides.
This business venture will not only bring BitGo access to the Indian market. An increase in BitGo’s on-chain transactions and managed funds is expected. At the same time, CoinDCX can rely on its new custodian’s secure and compliant digital asset services. With BitGo as a custodian partner, CoinDCX aspires to further drive safe, secure, and simple cryptocurrency adoption and usage.
Source: Asset Servicing Times and Cointelegraph
For more news on recent partnerships for institutional custody solutions, please visit: https://digital-assets-custody.com/de/bitfinex-partners-with-koine-to-launch-institutional-grade-custody-solution/