British crypto asset (virtual currency) exchange Archax has received regulatory approval and launched digital asset custody services as institutional investors step up their business to restore confidence in the crypto asset sector.
London-based Archax’s new custody business is one of the few services that has cleared the high hurdles that the Financial Conduct Authority (FCA) has imposed on companies dealing with crypto assets. According to Archax, all stored assets will be completely separate from the exchange. This means that if the trading business fails, the assets in custody are not subject to bankruptcy proceedings.
“Events like FTX highlight the need for a more traditional approach,” said Archax chief marketing officer Simon Barnby. “As an FCA-compliant custodian, we are permitted to hold crypto assets, tokenized assets such as funds and real estate, as well as traditional commodities and cash for our clients.”
Archax’s custody services will become even more appealing to banks and large institutional investors through its partnership with Swiss MPC (Multi-Party Computing) technology provider Metaco. The service will use the IBM Cloud, a proven security environment familiar to many of the world’s largest banks.
“We were looking for a partner with the right expertise, especially when it comes to cryptographic key security. They demand control,” Barnby said.
｜Translation: coindesk JAPAN
｜Editing: Toshihiko Inoue
｜Original: UK Crypto Exchange Archax Launches FCA-Regulated Custody Service