Archax, a London-based cryptocurrency exchange, has introduced its digital asset custody service after gaining regulatory approval from the Financial Conduct Authority (FCA).
The service, one of few to meet the FCA’s high standards for firms dealing in digital assets, offers secure storage for cryptocurrencies, tokenized assets such as funds and real estate, traditional instruments, and cash.
Archax’s Chief Marketing Officer, Simon Barnby, stated that the recent events surrounding FTX had highlighted the need for a more conventional approach to the crypto sector.
The partnership between Archax and Swiss multi-party computation (MPC) technology provider, Metaco, is one feature that draws banks and other big institutional clients to its custody service.
The service will be launched using IBM Cloud, a trusted critical security environment that many major banks worldwide are accustomed to. Barnby mentioned that Archax was careful in choosing its partners and those with the right expertise, particularly in the security of cryptographic keys. The FCA required Archax to control its technology, so outsourcing was not an option.
The Archax custody service offers clients peace of mind by ensuring that all assets held in custody are segregated and “solvency-remote” from the exchange. If the trading business were to go bust, the custodied assets would not be included in any bankruptcy proceedings. Launching the custody service is a step forward in rebuilding trust in the crypto sector, especially among institutional players.
The combination of FCA regulation, a partnership with Metaco, and the use of IBM Cloud make Archax’s custody service a secure and trustworthy option for clients looking to store their digital assets.
In summary, Archax’s digital asset custody service is a significant development in the crypto industry. Its FCA regulation, partnership with Metaco, and use of IBM Cloud make it a secure and reliable option for institutional clients seeking to store their digital assets.
The launch of this service is a step towards rebuilding trust in the crypto sector as the importance of crypto assets continues to grow in the financial world.
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