Koinex venturing into blockchain, will open development centre in Bengaluru

Cryptocurrency exchange Koinex is foraying into blockchain solutions and is inaugurating a development centre in Bengaluru. This development comes at a time when most other cryptocurrency exchanges have either shut operations or moved away from India.

“We have done one bit of the entire vision - Exchange. Moving forward we are diversifying our product line,” said Rahul Raj, CEO of Koinex. Founded in late 2016, Koinex is backed up by venture capital firm Beenext (Singapore) and Pantera Capital (San Francisco), the largest blockchain focused venture capital firm in the world.

“Koinex is venturing into building first and second layer blockchain infrastructure tools as part of our R&D initiatives which are going to be critical for product developers and designers who can easily build decentralized applications (or dApps) and push this technology with a consumer focus into the masses,” Raj said.

The company has set aside $1 million for community building measures- hackathons, meetups, partner with academic institutions, research, design course wear etc. The CoE aims to solve issues related to finance, payments, security, and banking operations on a global scale.

Mumbai-based Koinex was the first Indian exchanges to support multiple cryptocurrencies on its platform which made it the goto exchange for many of the 10 lakh crypto traders in India. At its peak Koinex did Rs.1700 crore in transaction volumes.

“We are working on a products related to fintech application like lending, trading, analysing, audit reports - all these will be leveraging blockchain technology,” Raj said.

Earlier this year, the Indian government stopped banking support for crypto-related businesses which resulted in over 90 per cent drop in transaction volumes in these exchanges. This move forced Indian exchanges to either expand globally or diversify its offerings. Zebpay and Bitxoxo are two Indian exchanges that have moved abroad notwithstanding the government’s move.

“The firm believes in the potential of Non-Fungible Tokens [NFTs] and feels strongly about tokenization being a unique way of representing ownership of an asset - both physical and digital,” the firm said.