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.
CoinSwitch, a crypto trading and investment platform, today released its sixth Proof of Reserves (PoR) report, stating that its crypto exchange platform holds reserves exceeding customer obligations as of March 31, 2026.
According to the official report, CoinSwitch reported total reserves of ₹2,360.33 crore against customer holdings of ₹1,747.25 crore, resulting in a surplus of ₹613.08 crore. The report divided the figures between crypto (virtual digital assets) and INR portions. For crypto assets, CoinSwitch reported reserves of ₹2,140.58 crore in contrast to customers’ holdings amounting to ₹1,673.41 crore, which makes for a coverage ratio of around 1.28 times.
As far as the fiat currency is concerned, the reserve was ₹219.75 crore as opposed to customers’ holdings of ₹73.83 crore, giving a coverage ratio of 2.97 times. The assessment was carried out in accordance with the requirements of the Institute of Chartered Accountants of India (SRS 4400).
CoinSwitch, claiming to have 2.5 crores users, publishes regular Proof of Reserves reports, showcasing its financials in comparison with the funds of its customers. The latest report reflects data for the fourth quarter of the financial year.
The company also reported a 12.44% growth in the number of cryptocurrencies held by its users, even while valuations across the market fluctuated throughout the reporting period. CoinSwitch said the increase reflected continued user participation on the platform. Bitcoin accounted for 40.62% of total VDA holdings, while Ethereum represented 10.38%.
Ashish Singhal, co-founder of CoinSwitch, stated, “Trust in crypto is not declared; it is demonstrated through consistent transparency and disciplined risk management. With our sixth proof of reserves disclosure, we continue to reinforce a simple principle: customer assets are fully backed and reserves remain well above user holdings.”
The Proof of Reserves audit has been a widely adopted process by many cryptocurrency companies around the world following the recent collapse of some firms that highlighted the discrepancy between their stated reserves and real user deposits.
However, these types of self-audited publications, despite being third-party verified, do not constitute a full financial audit.
Debate on gold-backed crypto stablecoins
On May 14, Nikhil Kamath, co-founder of Zerodha, and Ashish Singhal, co-founder of CoinSwitch, sparked a conversation on X regarding the possibilities of using gold-backed cryptocurrency stablecoins in India. Kamath suggested that gold-backed stablecoins could enable the monetization of India’s enormous gold reserves lying idle, estimated to be 25,000 tonnes worth $2.4 trillion, which are primarily held in private homes and temples.
He stated that a fixation on dollar-backed stablecoins may prove to be detrimental to the country in the long term, appreciating the government and regulators for rejecting such stablecoins and praising UPI. Singhal appreciated Kamath’s contribution to the topic and highlighted that gold-backed tokens like PAXG and XAUT are already operating worldwide.
Regulatory and liquidity risks remain despite market recovery
This most recent disclosure comes against the backdrop of general market recovery and greater acceptance of digital assets in India. However, it is important to note that the space remains vulnerable to global price dynamics and regulatory changes.
This is the sixth edition of the report since the earlier disclosures made by CoinSwitch, all of which have demonstrated that their reserve ratio is above 1:1.
The company has used these reports to highlight its liquidity position, particularly through higher INR reserve balances. However, the practical usability of reserves during periods of extreme market stress would still depend on factors such as asset liquidity and operational controls, areas not fully addressed in standard PoR disclosures.
Also Read: Kenya Moves to Calm Crypto Tax Fears as Finance Bill Debate Grows
