• Archax, a UK-regulated cryptocurrency exchange, has launched a digital asset custody service with the approval of the Financial Conduct Authority (FCA).
• The offering uses technology from Swiss MPC shop Metaco and IBM Cloud.
• All assets held in custody will be entirely segregated and “solvency-remote” from the exchange, meaning they would not be included in any bankruptcy proceedings.
Archax Launches FCA-Regulated Custody Service
UK-regulated cryptocurrency exchange Archax has launched a digital asset custody service that is approved by regulators, as institutional crypto players are tightening up their operations to rebuild trust in the sector. The London-based Archax’s new offering is one of few offerings to have cleared the Financial Conduct Authority’s (FCA) high bar for firms dealing in digital assets.
Technology Partnerships
The Archax custody service appeals to banks and big institutional customers by being partnered with Swiss multi-party computation (MPC) tech provider Metaco. The service will also be rolled out using IBM Cloud, which is familiar to many of the world’s big banks.
Segregated Assets
All assets held in custody will be entirely segregated and “solvency-remote” from the exchange. This means that if the trading business did go bust, custodied assets would not be included in any bankruptcy proceedings.
Rebuilding Trust
Events such as FTX have highlighted the need for a more traditional approach when it comes to digital asset management and security. As an FCA-regulated custodian, Archax is permitted to hold cryptocurrencies, tokenized assets like funds or real estate, as well as traditional instruments and cash for its clients.
Conclusion
With its partnerships with Metaco and IBM Cloud, Archax is providing secure services that appeal to institutional investors who want trustworthiness within their operations when it comes to dealing with digital assets.