Institutional blockchain trading platform OTCXN has expanded its custodial network with the addition of Aegis Custody, a San Francisco-based crypto custodian for digital assets.
Backed by Chinese international asset manager Fosun International Limited, Aegis is authorized by Hong Kong regulators to operate a digital asset custody. The license permits the company to offer services to institutional investors worldwide. It’s also applying for a similar license to operate as a Qualified Custodian in the US.
Aegis Custody’s hardware-cloud solution provides security for cryptos through the use of multi-signature wallets. The company secures holdings by a combination of proprietary hardware, cloud services, workflow, cold storage, as well as a service center where transaction workflow is divided into separate functions.
Prior to Aegis, OTCXN has already signed US-regulated custodians Kingdom Trust and Prime Trust, a move that could help the hybrid platform bring in more users.
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OTCXN signs more custodians
Both SEC-authorized firms provide custody for trading venues that use OTCXN technology and are looking to facilitate clearing and settlement of OTC block trades. However, they are not the only providers of infrastructure and operational cryptocurrency custodianship for the wider investment management industry. Leading cryptocurrency exchange Coinbase, Japanese financial holdings company Nomura, and most recently SIX Group, the owner of SIX Swiss Exchange, have all recently launched similar services for institutional investors.
OTCXN leverages its proprietary blockchain technologies to establish a new market model that improves liquidity access for the entire FX and cryptocurrency ecosystem. The company says the new collaboration helps institutional traders to trade crypto assets and FX while “eliminating the settlement risk inherent in traditional systems.”
OTCXN provides global liquidity services, thus eliminating the need for intermediaries in trading. Its recent partnerships aims to solve several issues in terms of mainstream acceptance of cryptocurrency institutional trading. It reduces risks of relying on counterparties credibility and eliminates the necessity for conventional intermediaries through a P2P community with a trade-to-settlement lifecycle.
OTCXN was established by electronic trading and e-FX technology expert Rosario Ingargiola, founder of FXone. Ingargiola led the design and development of one of institutional FX exchange technology stacks, used by global Tier-1 banks.