Coinbase Goes All-In On India's Crypto Market With CoinDCX Investment

Coinbase, Inc.’s stock (COIN) is expected to draw investor attention on Wednesday after the company said it has invested in India’s CoinDCX, giving it a post-money valuation of $2.45 billion.

Coinbase Ventures, the investment arm of the U.S. crypto exchange, had already invested in CoinDCX in multiple rounds since 2020. The company was part of a $135 million fundraising round of the Indian firm, which had valued it at $2.15 billion post-money.

"We believe India and its neighbors will help shape the future of the global on-chain economy. This transaction is subject to regulatory approvals and other customary closing conditions," Shan Aggarwal, chief business officer at Coinbase, said in a statement.

Retail sentiment on Stocktwits about Coinbase was in the ‘bearish’ territory at the time of writing, amid a broader pullback in cryptocurrencies due to ongoing trade tensions between the U.S. and China.

CoinDCX’s annualized group revenue was $141 million as of July, with annualized transaction volumes across products of $165 billion. The firm’s user base has exceeded 20.4 million, and it has $1.2 billion worth of assets under custody. India is a global leader in crypto adoptions, but lacks the regulatory backing that digital currencies enjoy in some other major markets.

“This fresh capital helps us accelerate our vision and enables us to take bolder and more ambitious bets – strengthening our business across India and the UAE, entering new markets, launching new products in the broader web3 space,” CoinDCX said in a statement.

The capital raise follows a report that Coinbase was looking to take CoinDCX private.  CoinDCX is looking to move beyond a theft in July, where hackers stole $44 million after targeting an internal account used to provide liquidity to customers. No customer funds were reportedly lost.

Coinbase stock has jumped 33% this year, amid Bitcoin and Ethereum surging over 20%, driven by favorable policies under the Trump administration and expectations of a rate cut from the Federal Reserve.

Also See: Caterpillar Stock Rallies Most In Over 4 Months After Analyst Sees AI-Driven Growth In Power Segment

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