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CoinSwitch Posts ₹613 Cr Reserve Cushion Amid Crypto Recovery

Key Highlights

  • CoinSwitch reported a ₹613.08 crore reserve surplus in its sixth PoR report.
  • Bitcoin accounted for over 40% of customer virtual digital asset holdings on the platform.
  • The company stated that user crypto holdings increased by 12.44% during the reporting period.

As an analyst, I’ve reviewed CoinSwitch’s latest Proof of Reserves report – their sixth one, actually. It confirms that as of March 31, 2026, their platform holds more than enough crypto to cover all customer balances. Essentially, they’ve demonstrated they have the funds to meet all obligations.

CoinSwitch’s official report shows they held ₹2,360.33 crore in reserves, while customers held assets worth ₹1,747.25 crore, leaving a surplus of ₹613.08 crore. The report breaks down these figures into crypto assets and Indian Rupees (INR). Specifically, CoinSwitch held ₹2,140.58 crore in crypto assets compared to customer holdings of ₹1,673.41 crore, meaning they had about 1.28 times the assets needed to cover customer holdings.

The bank held ₹219.75 crore in reserves to cover customer deposits of ₹73.83 crore, meaning they had almost three times the amount needed (a coverage ratio of 2.97). This assessment followed the standards set by the Institute of Chartered Accountants of India (SRS 4400).

CoinSwitch, with over 25 million users, regularly publishes reports that prove it holds enough funds to cover all customer balances. Their most recent report covers the financial data from the last three months of the year.

The company noted a 12.44% rise in the number of cryptocurrencies held by its users, despite market volatility during the period. This increase, according to CoinSwitch, shows continued user activity on the platform. Bitcoin made up the largest portion of these holdings at 40.62%, followed by Ethereum at 10.38%.

According to CoinSwitch co-founder Ashish Singhal, building trust in cryptocurrency means consistently being open and managing risks carefully. Their latest report confirming reserves proves that customer funds are fully covered and the company holds more in reserve than customers have deposited.

After some cryptocurrency companies failed and it became clear they didn’t have the funds they claimed, many others have started using “Proof of Reserves” audits. This process helps prove that a company actually holds the deposits its users believe it does.

Even though these publications are checked by an outside source, they aren’t the same as a complete, official financial audit.

Debate on gold-backed crypto stablecoins

Nikhil Kamath, co-founder of Zerodha, and Ashish Singhal, co-founder of CoinSwitch, recently discussed the potential of using gold-backed cryptocurrency stablecoins in India on X (formerly Twitter). Kamath proposed that these stablecoins could unlock the value of India’s vast gold reserves – around 25,000 tonnes worth $2.4 trillion – which are largely held by individuals and in temples and currently aren’t being used to their full potential.

He warned that relying too heavily on stablecoins tied to the US dollar could harm the country’s financial future, and commended the government and regulators for choosing to avoid them in favor of India’s UPI system. He also acknowledged Kamath’s insights and pointed out that gold-backed digital tokens, such as PAXG and XAUT, are already being used globally.

Regulatory and liquidity risks remain despite market recovery 

This new information appears as the market generally improves and more people in India embrace digital assets. Still, it’s important to remember that the market can be easily affected by global price fluctuations and changes in regulations.

This report is the sixth update following CoinSwitch’s initial disclosures, and it continues to show that they hold more than enough reserves to cover their liabilities – maintaining a ratio above 1:1.

As an investor, I’ve been looking at their reports, and they’re emphasizing how much cash they have, especially in Indian Rupees. While that’s reassuring, I’m still wondering how easily they could *actually* access that money if the market really crashed. The reports don’t fully explain how quickly they could turn those reserves into cash, or how well they’re prepared operationally to handle a major crisis. It’s good to see the reserves, but I’d like more detail on the practical side of things.

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2026-05-25 20:49