Crypto-exchange CoinDCX releases its Proof of Reserve report Q3CY23

Crypto-exchange platform CoinDCX in its Proof of Reserves (PoR) report for the July to September 2023 period said its reserves stood at nearly USDT (Tether) 159 million, while the user liability stood at around USDT 157 million.

“According to the audited Statement of Reserves and User Liability report, the reserves total USDT 159,112,287, while the user liability stands at USDT 157,191,487,” the company said in a release.

For the April-June quarter, the crypto exchange held around USDT 179 million in reserves whereas its user liability stood at USDT 177 million.

USDT (Tether) is a cryptocurrency stablecoin pegged to the US dollar.  

The Mumbai-based crypto-exchange platform said that its order placement system ensures that assets bought by the users are placed in a 1:1 ration under vaults on or off-chain, especially warm or cold wallets.

Warm wallets store a user’s private keys offline with the provision to be connected to the internet whenever a user wants to trade or transfer cryptocurrencies. Cold wallets store a user’s private keys offline and are not connected to the internet, making them secure against hacking attacks.

This order placement system enables a crypto company to buy or hold crypto assets when a user places an order.  

"We are proud to present our third consecutive quarterly PoR report. At CoinDCX, we’ve always believed in simplifying the world of digital assets and maintaining the highest standards of security and compliance. As we persist in fortifying our exchange with pioneering features, our topmost priority remains the protection and well-being of our valued customers,” said Sumit Gupta, co-founder at CoinDCX.

A PoR sees the involvement of third-party auditors to verify an exchange's asset holdings and align them with customer balances.

CoinDCX had published its first PoR report in December 2022, the company said on its website. Established in 2018, the company claims to have over 14 million registered users.