CoinDCX announces ₹50 crore R&D for Indian crypto custody solution

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CoinDCX has announced Bharat Custody, a virtual digital asset (VDA) protection solution designed for the Indian crypto ecosystem. Bharat Custody will function as a third-party custody service for Indian exchanges and VDA companies, providing what the company claims to be an “Indianized” solution to safeguard crypto assets within the country.

Announced at Unfold 2024, CoinDCX’s premier Web3 event, this initiative aims to build trust among Indian investors by prioritizing security and aligning with local compliance standards, CoinDCX said.

Sumit Gupta, Co-Founder of CoinDCX, stated, “The need for a secure, safety-first, and uniquely Indian crypto custody solution has never been more pressing. 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. Bharat Custody is designed to serve the entire industry, supporting all crypto exchanges and VDA companies, not just CoinDCX. Currently, no localized custody solution exists in the Indian market, creating a critical gap the industry must address collaboratively.”

He added that inspired by the role of the National Securities Depository Limited in capital markets, Bharat Custody will be managed and hosted in India. The company has set aside Rs 50 Crore for R&D and envisions launching the custody solution in the first half of 2025.

Bharat Custody is designed with independent governance. The solution incorporates security measures including air-gapped architecture, advanced encryption protocols, and AI-powered fraud detection systems. All assets are stored and managed entirely within India, CoinDCX said, adhering to data localization and protection standards.

According to the company, this initiative also includes a consumer protection fund, a self-imposed regulatory framework modelled on best practices from capital markets, and a commitment to transparency through periodic public reporting.

Gupta continued, “With Bharat Custody, we are moving towards strengthening the crypto ecosystem and ensuring the safety and integrity of Indian investors’ assets. This solution is more than just infrastructure—it’s a testament to our commitment to building a robust, self-regulated framework that aligns with the expectations of regulators and the aspirations of millions of Indian crypto enthusiasts.”