CoinSwitch, India's largest cryptocurrency exchange, is expanding its array of services to include those that target high net-worth individuals and institutional investors alike.
The Mumbai-based exchange said Thursday, September 5, that the new service, through its team comprising certified financial analysts, shall look at bespoke investment advisory, and risk management solutions, among other offerings designed to meet the needs of HNIs in particular.
This comes when interest in cryptocurrency investments has surged, especially after big-ticket happenings in the global crypto space.
In an exclusive interaction with Gadgets360, the Business Head at CoinSwitch, Balaji Srihari said the greenlighting of cryptocurrency-based ETFs in the US triggered a dramatic increase in crypto-asset interest among institutional investors. This interest has grown demand for advanced investment products in India as well, forcing CoinSwitch to scale its operations, according to Srihari.
As institutional interest grows so does the demand for sophisticated investment solutions from HNIs and institutions. This new service is designed to meet this demand by equipping its users with the tools," Srihari told Gadgets360.
ETFs have been at the forefront of the recent spate of institutional investments in cryptocurrencies. For example, BlackRock's Bitcoin ETF, launched in January 2024, has already witnessed inflows of around US$15 billion, or about ₹1.3 lakh crore, according to Statista. Since the ETF route allows exposure to cryptocurrencies through traditional stock exchanges, there is no need to sign up for crypto exchanges. This ease of access also explains a rush by large investors for such fancy crypto-related services.
CoinSwitch has added a dedicated section for this service on its website. Interested investors must fill in their details and choose the account type. Post-enrollment, executives assigned by the company will contact them to discuss investment requirements with them. Expert Investment strategies personalized to the needs of the investor's Professional tax filing services Active management of accounts Special access to the market.
CoinSwitch also spoke of offering 'institutional-grade security' to safeguard the assets of its HNI and institutional clients. The security feature at the exchange explained Srihari was strong. "We use top-tier asset storage solutions, advanced security protocols, and robust risk management practices. Our custody providers insure assets both in storage and in transit. They are SOC 2 Type II certified and undergo regular pen-testing by globally recognized cybersecurity firms."
Security in virtual cryptocurrency exchanges has become a growing concern in India, especially after the WazirX heist on July 18, in which hackers siphoned off US$230 million, which is roughly ₹1,900 crore. This incident raised a red flag among crypto users as to what was needed much more in terms of security in the crypto space.
Regarding concerns on security, Srihari promised the majority of CoinSwitch's digital assets were stored in cold wallets, not easily prone to hacks. He said just a small portion of assets remain in hot wallets for daily operation needs. Despite the heightened security, CoinSwitch would not disclose the identity of its custody partners or share what percentage of user funds are in any given wallet, the company said, due to security and confidentiality agreements it has in place.
CoinSwitch's latest foray is a strategic move to tap into the increasing demand for crypto investment solutions from high net-worth individuals and institutions. Besides this, the exchange is positioning itself as an important player in the dynamic changing landscape for cryptocurrencies in India by providing bespoke advisory, advanced security features, and exclusive market access. As interest in cryptocurrencies continues to grow among institutions, the raft of new services from CoinSwitch positions itself as a holistic and secure solution for large-scale investors.