Cryptocurrency custodian firm Anchorage Digital recently formed a custodial exchange network with five digital asset trading platforms to segregate institutional client funds from exchanges into regulated asset vaults.

- Advertisement -

AT adthe custodian mentioned that he is partnering with Binance.US, CoinList, Blockchain.com, Strix Leviathan, and Wintermute. This will provide institutions with direct access to a wide range of trading pairs, Anchorage said.

- Advertisement -

The custodial firm also noted that building a network of custodians allows institutions such as Registered Investment Advisors to fulfill their obligations to their clients in a secure environment, holding assets through a custodian throughout the life cycle of a transaction. It also gives clients some peace of mind knowing that their assets are not stored in hot wallets that are susceptible to hacking.

- Advertisement -

Diogo Monica, co-founder and president of Anchorage, said it allows the industry to go beyond the “hodl”. He tweeted:

Anchorage Digital CEO Nathan McCauley emphasized that exchanges and custodians need to be different, as they are for more traditional financial structures. He noted that if the crypto space wants to gain more trust from institutional clients, the industry needs to “follow the same pattern” as traditional finance.

Anchorage provided the first US national crypto bank

The formation of the custodian network of exchangers comes just months after the Office of the Comptroller of the United States (OCC) announced that it intends to drop legal proceedings against Anchorage for possible violations of anti-money laundering rules. The custody firm then told Cryptooshala that they were working to strengthen the areas that were identified by the OCC.

Meanwhile, back in December 2021, Anchorage received $350 million in a funding round led by investment major KKR. With this event, the firm’s valuation rose to over $3 billion. It also marked the first time that KKR tried its hand at investing in the cryptocurrency space.