cryptoknowmics.com
Anchorage Digital, a cryptocurrency custody firm, recently announced the formation of an exchange custody network with five digital asset trading platforms to isolate institutional client money from exchanges into regulated asset vaults. The custodian announced that it has worked with Binance.US, CoinList, Blockchain.com, Strix Leviathan, and Wintermute. According to Anchorage, institutions will have direct access to a large selection of trading pairings.
Anchorage Custodial Network
According to the custody provider, the development of the custody network allows institutions like Registered Investment Advisors to meet their responsibilities to their clients in a secure environment by holding assets through a custodian throughout the life-cycle of a trade. Additionally, knowing that their assets are not held in hot wallets, which are vulnerable to attacks, provides clients with some peace of mind. This, according to Diogo Mónica, co-founder and president of Anchorage, allows the industry to progress beyond "hodl." He tweeted: https://twitter.com/diogomonica/status/1534898773804978176 According to Anchorage Digital CEO Nathan McCauley, exchanges and custodians should be distinct, just as they are for more traditional finance institutions. He stated that if the crypto business wants to acquire institutional clients' trust, it must "play by the same rules" as conventional finance. The exchange custody network was formed months after the US Office of the Comptroller of the Currency (OCC) stated that it would seek to cease actions against Anchorage for alleged anti-money laundering offences. Meanwhile, Anchorage raised $350 million in a fundraising round headed by KKR in December 2021. The firm's value increased to more than $3 billion after this event.