OTCXN Signs Prime Trust for Crypto Custodian Service

Institutional blockchain trading platform OTC Exchange Network (OTCXN) has onboarded with SEC-regulated custodian Prime Trust, a move that could help the hybrid platform bring in more users.

According to a joint statement, the Nevada trust company will provide custody for trading venues that use OTCXN technology, and is looking to facilitate clearing and settlement of OTC block trades.

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Prime Trust is already famous at the blockchain space thanks to its back-office solutions. The company began its Bitcoin storage service in July, and then added support for Ethereum and ERC-20 tokens.

In simple terms, a custodian is a financial institution that holds assets, in both electronic and physical forms, on behalf of its clients to ensure that they are kept safe and secure. In the blockchain space, a custodian service does the same thing but exclusively for digital currencies and tokens.

OTC Exchange’s platform solves 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.

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Multi-custodian solutions in the market

OTCXN leverages its proprietary blockchain technologies to establish a completely new market model that improves liquidity access for the entire FX and cryptocurrency ecosystem.

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.

Prime Trust, however, is not the only company providing 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.

Commenting on the news, Rosario Ingargiola, founder and CEO of OTCXN, said: “Bringing Prime Trust on-board to use OTCXN’s Custodian Desk platform to support our mutual institutional clients trading digital assets such as cryptocurrencies over OTCXN’s unique network, is an exciting development. Prime Trust is one of only a few regulated US entities offering neutral custody services in Fiat and Cryptocurrencies. They stand out for their experienced management team with deep securities and fiduciary industry backgrounds, hot and cold hardware-based wallets, and client asset safety.”

“OTCXN is an exciting and well thought-out institutional-grade digital asset trading network unlike anything we’ve worked on until now. OTCXN’s strategic technology aligns perfectly with our continued mission to support an ever-evolving digital economy; and, we are excited to play a role in bringing more infrastructure to the industry,” cocluded Scott Purcell, Prime Trust’s CEO and Chief Trust Officer.

 

source: https://www.financemagnates.com/cryptocurrency/news/otcxn-signs-prime-trust-for-crypto-custodian-service/