Categories: Business

Anchorage forms custody network with five crypto exchanges

Crypto custody firm Anchorage Digital has recently formed an exchange custody network with five digital asset trading platforms to segregate institutional client funds from exchanges into regulated asset vaults. 

In an announcement, the custodian mentioned that it has partnered with Binance.US, CoinList, Blockchain.com, Strix Leviathan and Wintermute. According to Anchorage, this will provide institutions with direct access to a wide range of trading pairs.

The custody firm also noted that the formation of the custody network allows institutions like Registered Investment Advisors to meet their obligations to their clients in a safe environment by holding assets through a custodian, all throughout the life-cycle of a trade. Additionally, this gives clients some sort of peace of mind, knowing that their assets are not stored in hot wallets, which are prone to hacks.

Diogo Mónica, the co-founder and president of Anchorage, said that this allows the industry to move beyond “hodl.” He tweeted:

https://twitter.com/diogomonica/status/1534898773804978176?ref_src=twsrc%5Etfw

Anchorage Digital CEO Nathan McCauley underscored that exchanges and custodians should be different, just as it is for more conventional finance structures. He noted that if the crypto space wants to gain more trust from institutional clients, the industry must “follow the same playbook” as traditional finance.

Related: Anchorage granted US’s first national crypto bank charter

The formation of the exchange custody network came months after the United States Office of the Comptroller of the Currency (OCC) announced that it intends to pursue cease and desist proceedings against Anchorage for possible violations of anti-money laundering regulations. Back then, the custody firm told Cointelegraph that they are working to reinforce the areas that were identified by the OCC.

Meanwhile, back in December 2021, Anchorage secured $350 million in a funding round led by investment bigwig KKR. With this event, the firm’s valuation rose to more than $3 billion. This also marked the first time that the KKR has tried its hands at investing in the cryptocurrency space.

admin

Share
Published by
admin

Recent Posts

Is there a way for the crypto sector to avoid Bitcoin’s halving-related bear markets?

There is good reason to be afraid. Previous down markets have seen declines in excess…

3 years ago

UPS and FedEx are good dividend stocks, but which should you take?

United Parcel Service, Inc. (NYSE:UPS) and FedEx Corporation (NYSE:FDX) are two robust logistics companies. Both…

3 years ago

Bitfarms sold 3K Bitcoin as part of strategy to improve liquidity and pay debts

Canadian crypto mining firm Bitfarms sold roughly $62 million worth of Bitcoin (BTC) in June,…

3 years ago

This biotech stock is up 100% on Tuesday: here’s the catalyst

Invezz does not provide financial advice. Our aim is to simplify information about investing, enabling…

3 years ago

Japanese film studio announces the production of a series based on crypto

Noma, a Japanese film studio, has announced that it is producing three feature films that…

3 years ago

Bitcoin price taps 5-day highs as Shiba Inu leads altcoin gains

Bitcoin (BTC) saw continued strength on June 21 as Wall Street trading opened with a…

3 years ago