CoinDCX Unveils Feature For Users To Access Control Over Crypto Assets

SUMMARY

CoinDCX users now have the option to hold their assets directly on the blockchain eliminating any risk of exposure

In the centralised custody of assets, the service provider holds the entire custody to the users’ holdings

It came at a time when cryptocurrency users are concerned over the security of their assets, particularly after WazirX’s data breach that led to a heist of assets worth nearly $235 Mn

Homegrown cryptocurrency exchange CoinDCX has rolled out an integrated decentralised custody feature that will now allow its users to access control over their crypto assets on the blockchain.

Earlier the control over the users’ assets lied solely with the service provider in centralised custody.

The 15 Mn users of CoinDCX now have the option to hold their assets directly on the blockchain eliminating any risk of exposure.

Inc42 has learnt that CoinDCX is the first such platform to launch a decentralised feature for crypto holdings in India. The feature comes at a time when cryptocurrency users are concerned over the security of their assets, particularly after WazirX’s data breach that led to a heist of assets worth nearly $235 Mn.

The decentralised custody means that the assets, instead of being held by service providers such as CoinDCX, would be held directly on the blockchain.

While a decentralised feature doesn’t mean self custody wherein the user has complete access over their holdings, it allows both the service provider and user to access the custody that lies on the blockchain.

It is pertinent to note that in the centralised custody, the service provider holds the entire custody to the users’ assets.

The CoinDCX users now have both options either to hold their asset with CoinDCX or directly on the blockchain. Holding assets on blockchain removes the risks associated with wallets getting hacked, Inc42 learnt from the company.

Founded by Sumit Gupta and Neeraj Khandelwal in 2018, CoinDCX offers access to Web3 experiences and democratise investments in virtual digital assets with user safety and security.

The Mumbai-based crypto exchange platform has been adopting measures to safeguard users’ holdings on its platform for a while.

After the cyberattack on crypto exchange platform WazirX, CoinDCX in August set up a crypto investors protection fund (CIPF) to compensate users for losses incurred in security breaches or other adverse events.

On CIPF fund Gupta, cofounder of CoinDCX, said, “…this dedicated fund will provide an additional layer of protection, ensuring that our customers’ assets remain secure and intact.”

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