CoinDCX, an Indian crypto exchange, has announced the integration of decentralised custody inside the CoinDCX App. This feature allows users to move their holdings from CoinDCX’s custody to a decentralised wallet, meaning their assets will be stored directly on the blockchain.
With this, its 15 million users will get greater control over their crypto assets, along with enhanced security and transparency, the company said. Simulatenously, users retain full access to the platform’s core features.
The decentralised custody feature provides a more streamlined alternative to traditional self-custody wallets, often requiring users to manage complex seed phrases and private keys. CoinDCX’s Web3 Mode eliminates these barriers, replacing seed phrases with advanced security layers such as two-factor authentication (2FA) and multi-party computation (MPC), making decentralised custody more secure and accessible to the broader crypto community.
It also allows users to easily transition between decentralised and centralised systems. Users can transfer their assets back to the CoinDCX exchange for trading or liquidation any time, it said.
Sumit Gupta, Co-Founder, CoinDCX, said, “Decentralized custody on the Web3 Wallet works like a dual-key bank locker, where both user and platform authorization are needed to access assets. This multi-layered security reduces the risk of unauthorized access, ensuring maximum protection for users. As the first exchange in India to offer this feature to 15 million users, we continue to uphold the highest security standards while adhering to Indian regulations. With decentralized custody, users can confidently engage with the growing world of DeFi, knowing their assets are both secure and compliant.”
Alongside, the integration of multi-party computation (MPC) ensures no single point of failure, reducing the risk of unauthorized access to users’ crypto holdings.
In line with Indian regulations, external withdrawals are restricted to maintain a secure and compliant environment, safeguarding both users and the exchange.