Anchorage, a crypto custody platform, has recently created a network of exchange custody in partnership with 5 exchanges of digital assets to draw a line of demarcation between the organizational consumer funds as well as the exchanges into the asset vaults that are regulated.
In a declaration, it was disclosed by the custodian that collaboration has been initiated by it with Wintermute, Strix Leviathan, Blockchain.com, CoinList, and Binance.US. As per Anchorage, in this way, the organizations can straightly access a broad series of trading pairs. The custody additionally mentioned that the custody network’s creation permits the organizations such as Registered Investment Advisors to fulfill the commitments that they have made for their consumers in a secure atmosphere by keeping assets via a custodian, throughout a trade’s life cycle.
In addition to this, the customers are also provided with contentment, keeping in view that the assets in their possession are not left at the mercy of hot wallets as they tend to be hacked. The president and the co-founder of Anchorage, Diogo Mónica, stated in a Twitter post that this permits the industry to advance further. In his tweet, he claimed that the ecosystem of cryptocurrency has evolved more than just hodling, with the provision of new ways and chances to facilitate the institutions and the investors that are worthy to take part as seamlessly and safely as possible
Nathan McCauley, the CEO of Anchorage Digital, highlighted that the custodians and exchanges should be diverse, similar to the structures of traditional finance. He was of the view that if the sector of cryptocurrency is pursuing to obtain the additional trust from organizational consumers, the very playbook which is followed by the conventional finance ought to be kept in mind by the industry.
The establishment of the network for exchange custody was witnessed several months after the declaration by the Office of the Comptroller of Currency (OCC) that the agency wants to move toward cease-and-desist measures against Anchorage over the likely infringements of the regulations dealing with anti-money laundering. At that time, the custody venue asserted that it was making efforts to improve the zones that the OCC focused on.
In the meantime, in December previous year, Anchorage received up to $350M in its funding round that was driven by KKR (a prominent name in investment platforms). The upsurge of nearly $3B has been witnessed in the valuation of the company due to the very incident. This counts to be the earliest time when an attempt has been made by the KKR to do crypto investment.
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