Cryptocurrency custody firm Anchorage Digital 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 give institutions direct access to a wide range of trading pairs.
The custody firm also noted that the formation of the custody network would allow entities such as registered investment advisors to fulfill their obligations to their clients through a custodian in a safe environment, throughout the life-cycle of a business. allow to do. Additionally, it gives customers some sort of peace of mind, knowing that their assets are not stored in hot wallets, which are prone to hacks.
Diogo Monica, co-founder and president of Anchorage, said it allows the industry to move beyond the “hodl”. He tweeted:
announcement of @ Anchorageof the new custody exchange network.
As the crypto ecosystem has evolved beyond the “hoddle” – opening new doors of opportunity for investors – institutions deserve to participate as safely and seamlessly as possible.
— Diogo Monica (@diogomonica) 9 June 2022
Anchorage Digital CEO Nathan McCauley insisted that exchanges and custodians should be separate, just as it is for more traditional finance structures. He added that the industry must “follow the same playbook” as traditional finance if the crypto space wants to gain more trust from institutional customers.
related: Anchorage Grants America’s First National Crypto Bank Charter
The formation of the Exchange Custody Network comes months after the United States Controller of the Currency (OCC) announced that it intended to pursue cease and desist proceedings against Anchorage for potential violations of anti-money laundering regulations. . At the time, the custody firm told Cointelegraph that they were working to reinforce the areas identified by the OCC.
Meanwhile, in December 2021, Anchorage secured $350 million in a funding round led by large investment KKR. With this event, the firm’s valuation increased to over $3 billion. This is the first time KKR has tried to invest in the cryptocurrency space.
