Coinswitch Launches Digivault to Bridge India’s Crypto Custody Gap

India’s Crypto Future Strengthens as Coinswitch Launches Digivault

Coinswitch launches Digivault, marking a major milestone in India’s evolving digital finance landscape. On March 17, CoinSwitch officially introduced its crypto custody solution tailored for the Indian market, including HNIs, institutions, and family offices. The platform aims to provide core digital asset infrastructure to power the next phase of responsible adoption across the country.

Source: X Official

1. Expands beyond retail trading into institutional-grade services

2. Builds a secure foundation for long-term digital asset management

Though retail users remain central to the ecosystem, DigiVault significantly enhances capabilities by catering to high-value investors and enterprises.

Enterprise-Grade Security with Global Technology Backbone

DigiVault has partnered with Fireblocks, a globally recognized platform for secure digital asset custody. Fireblocks has processed over $10 trillion in transactions across 150+ blockchains and uses advanced Multi-Party Computation (MPC) technology.

1. Eliminates single points of failure in key management

2. Provides strong protection against cyber threats

This collaboration ensures that Indian users gain access to global-level security standards while maintaining local compliance expectations and governance frameworks.

Tailored Solutions for Individuals, Institutions, and Developers

The platform is designed to serve multiple user segments with specific needs. For individuals and high-net-worth users, it offers secure long-term storage along with controlled withdrawal mechanisms.

1. Institutions benefit from treasury tools, multi-level approvals, and audit-ready processes

2. Developers gain access to APIs and wallet infrastructure for faster Web3 innovation

Round-the-clock local support further enhances usability, making DigiVault practical for both financial entities and technology builders aiming to scale securely.

Tokenization, Compliance, and Strategic Growth

With increasing interest in tokenization, DigiVault enables partners to onboard assets, tokenize them, and manage the entire lifecycle through a unified system.

1. Supports secure issuance, distribution, and lifecycle management

2. Simplifies operations while ensuring scalability and compliance

The platform follows a compliance-first approach aligned with FIU-IND guidelines and PMLA requirements. Strong KYC, AML checks, transaction monitoring, and audit-ready reporting ensure transparency. This positions CoinSwitch as a full-stack provider spanning investing, trading, and custody, strengthening trust in India’s digital asset ecosystem.

India’s Crypto Future: Opportunities, Challenges, and Policy Debate

As adoption accelerates, participation is expanding beyond retail into areas like real-world asset tokenization. However, the lack of robust, locally aligned custody infrastructure has been a major gap. DigiVault aims to bridge this by combining security, regulatory alignment, and enterprise-grade governance.

1. Helps institutional investors manage risk with structured controls

2. Encourages capital inflow by offering trusted storage solutions

Despite growing innovation, regulatory clarity remains a concern. Recent discussions highlight this gap, including calls from policymakers like Rajya Sabha MP Raghav Chadha, who urged authorities to formalize the sector. He pointed out the contradiction where assets are taxed yet lack clear legal recognition.

Government efforts so far have focused on taxation, monitoring, and caution rather than full-scale legalization. While initiatives around blockchain exploration and central bank digital currency development show progress, a comprehensive regulatory framework is still evolving.

Conclusion: 

India’s journey toward becoming a global crypto hub will depend on balanced policies, investor protection, and infrastructure growth. Coinswitch launches Digivault at a critical time, potentially accelerating institutional participation and strengthening the foundation for a secure and scalable digital economy.