Coinbase Bets Bigger on India with New CoinDCX Investment

CoinDCX’s Journey

CoinDCX, founded in 2018 by Sumit Gupta and Neeraj Khandelwal, started as a platform to make digital assets accessible to Indian users. Over the years, it has expanded its offerings, including spot trading, futures, and staking services. By July 2025, the exchange boasted more than 20.4 million registered users. Its annualized trading volume reached $165 billion, with assets under custody exceeding $1.2 billion and group revenue hitting $141 million.

This growth did not come without challenges. In July 2025, CoinDCX faced a security breach that resulted in a $44 million loss from an internal account. Customer funds remained untouched, and the company used its reserves to restore operations quickly. Gupta emphasized the platform’s profitability and commitment to expansion, which helped rebuild trust.

Analysts point to several factors behind Coinbase’s decision. CoinDCX’s focus on compliance stands out, especially in India, where regulatory clarity is evolving. The exchange has registered with the Financial Intelligence Unit and adheres to strict know-your-customer protocols. Its recent push into the Middle East, including the acquisition of BitOasis, aligns with Coinbase’s interest in high-growth regions.

BitOasis, a Dubai-based platform, holds licenses in the UAE and Bahrain. The deal, completed in July 2024, allows CoinDCX to tap into the Middle East’s burgeoning crypto scene, where trading volumes in local currencies are rising. This expansion creates a corridor between South Asia and the Gulf, areas with over 100 million crypto owners combined.

For Coinbase, this investment fits into a broader 2025 strategy. The U.S.-based giant has poured over $250 million into Indian startups, including CoinSwitch Kuber. Earlier this year, it acquired Deribit, a leading derivatives exchange, for $2.9 billion to strengthen its position in advanced trading products. Coinbase also eyes Web3 infrastructure and AI-integrated finance tools, aiming to diversify beyond traditional spot markets.

India’s Crypto Boom Fuels the Deal

The Indian crypto market provides context for this deal. With a population of 1.4 billion and increasing tech adoption, India ranks high in global crypto ownership. A Chainalysis report from 2024 showed the country leading in grassroots adoption despite past tax uncertainties. Recent government moves toward formal regulation have encouraged institutional interest.

This investment could accelerate several trends. First, it might enhance liquidity on CoinDCX, attracting more retail and institutional traders. Second, collaboration could lead to new products, such as localized wallets or educational tools tailored for Indian users. Third, it signals to other investors that Asia’s crypto sector is ripe for growth, possibly sparking more deals.

In the Middle East, the deal supports rising demand for compliant platforms. Countries like the UAE have established crypto-friendly hubs, drawing exchanges and talent. CoinDCX’s entry there positions it to capture flows from oil-rich economies diversifying into digital assets.

Coinbase itself has navigated ups and downs. Its stock rose over 150% in 2024 amid Bitcoin ETF approvals, which brought institutional money into the space. The company’s international revenue now accounts for a growing share, reducing reliance on the U.S. market.

The Road Ahead

India’s proposed crypto bill could impose stricter rules, affecting trading volumes. Geopolitical tensions in the Middle East might influence market stability. Yet, both companies express optimism, with Coinbase stating excitement about making crypto more accessible in the region.

As the deal awaits regulatory approvals, its success will depend on execution. If CoinDCX leverages the funds for innovation and user growth, it could solidify its market lead.

For Coinbase it offers a foothold in a market projected to grow exponentially.