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Anchorage Welcomes Five Prominent Digital Assets Exchanges, Liquidity Providers, and Liquidity Takers to Improve Capital Efficiency
The foundation for a safer, fairer crypto marketplace begins here
From Washington to Wall Street, recent events have made it increasingly clear that a trusted and secure crypto economy will require client funds to be segregated into separate, regulated institutional vaults, which is something that we at Anchorage Digital have believed since our founding. That’s why, today, we are pleased to announce a groundbreaking, industry-first custody exchange network giving institutions direct access to most trading pairs across prominent exchanges. The launch of the partnership includes its first full integration with Binance.US and commitments from CoinList, Blockchain.com, Strix Leviathan, and Wintermute.
“At the end of the day, we believe exchanges and custodians should be structurally different,” said Nathan McCauley, Co-Founder and CEO of Anchorage Digital. “Traditional finance has long been held to the same standard; if the crypto industry wants to cultivate the same level of trust with investors and the public, we need to follow the same playbook. Anchorage is proud to work with some of the world’s leading exchanges to make that possible for crypto.”
“As the American digital asset industry continues to mature, there is growing demand from institutions for custody, liquidity, and enhanced market access,” said Binance.US CEO Brian Shroder. “By combining the advanced security of Anchorage with the best-in-class exchange technology of Binance.US, this integration eliminates multiple pain points to institutional trading, and marks a major milestone in the evolution of digital asset infrastructure. We are excited to innovate alongside industry leaders such as Anchorage to bring more differentiated crypto offerings to the U.S. market.”
“This solution bridges the need for safe participation in crypto custody and better trading liquidity for institutions and most importantly — it puts clients’ needs first. Anchorage is listening to regulators, and inviting the industry to take part in a proactive and safe solution,” said Graham Jenkin, Co-Founder and CEO at CoinList.
Anchorage continues to be committed to increasing institutional crypto participation through a regulated, safe, and scalable model. We firmly believe that to make digital assets part of our everyday lives, the infrastructure needs to be equitable, efficient, and above all safe for participants.
Our exchange network is significant in three distinct ways, for trading partners and exchanges alike:
- Fair market structure: In traditional markets, custodians and exchange venues hold different interests and duties to their customers, meaning that the entity custodying assets would never also be the exchange venue. Just as an institution cannot custody its assets on the New York Stock Exchange, our solution provides clear and distinct independence and separation between qualified custody and a crypto exchange.
- No prefunding: Trading participants and exchanges alike benefit from increased access to liquidity and reduced counterparty risk. We solved a difficult technical problem, eliminating the need for traders to prefund individual accounts across multiple exchanges in order to obtain the best pricing, while minimizing the impact on exchange treasury operations and reducing overall counterparty credit risk. As more exchanges connect directly with Anchorage’s APIs, more efficient exchanges will follow.
- Safe participation: Separating the roles of custody from exchanges allows institutions such as Registered Investment Advisors (RIAs) to truly meet their fiduciary obligations, holding assets with a qualified custodian through the full lifecycle of a trade. More importantly, keeping custody with Anchorage removes hot-wallet hack risk, keeping assets safe without sacrificing convenient trading with the protections of working with a nationally chartered bank.
“Blockchain.com institutional clients’ assets are held separately and segregated when custodied. We’re pleased to be able to bring added liquidity and a seamless trading solution to our clients, and to partner to develop critical infrastructure for digital assets,” said Peter Smith, CEO and Co-Founder at Blockchain.com.
“Safe and secure access to liquidity is critical for trust in the digital asset economy. Wintermute is excited to join the Anchorage exchange network to continue advancing transparency, fairness and efficiency in crypto,” said Evgeny Gaevoy, Founder and CEO, Wintermute.
“The future of the crypto economy depends on more efficient trading. By eliminating the need for prefunding individual accounts across multiple exchanges, this industry-leading network is a major step toward more efficient trading for our clients,” said Sadie Raney, CEO and Co-Founder, Strix Leviathan.
Interested in better capital efficiency through Anchorage qualified custody? Please get in touch.
About Anchorage Digital
Anchorage Digital is a regulated crypto platform that provides institutions with integrated financial services and infrastructure solutions. With the first federally chartered crypto bank in the US, Anchorage offers institutions an unparalleled combination of secure custody, regulatory compliance, product breadth, and client service. Founded in 2017, Anchorage is valued at over $3 billion and is backed by leading institutions including Andreessen Horowitz, GIC — Singapore’s sovereign wealth fund, Goldman Sachs, KKR, and Visa. Headquartered in San Francisco, California, Anchorage is remote-friendly with offices in New York, New York; Porto, Portugal; Singapore; and Sioux Falls, South Dakota. Learn more at anchorage.com, on Twitter @Anchorage, and LinkedIn.
About BinanceUS
Launched in September 2019, Binance.US is a digital asset marketplace, powered by matching engine and wallet technologies licensed from the world’s largest cryptocurrency exchange, Binance. Operated by BAM Trading Services based in San Francisco, California, Binance.US provides a fast, secure and reliable platform to buy and sell cryptocurrencies in the United States.
About CoinList
CoinList, one of the fastest growing crypto financial platforms, is where the world’s best crypto projects build their communities and early adopters can invest in and trade top-tier digital assets.
About Blockchain.com
Blockchain.com is the world’s most popular way to buy, sell, and trade crypto. Whether you want to trade, earn, custody, or access full-stack institutional solutions, Blockchain.com is a market leader in retail and institutional crypto products. Venture backed since 2014, Blockchain.com was last valued at $14 billion. Visit Blockchain.com for more info, follow us on Twitter @blockchain, on Instagram @blockchainofficial, check out The Blockchain.com Podcast, and read our blog for the latest company news.
About Strix Leviathan
Founded in 2017, Strix Leviathan is an institutional digital asset management firm. Their actively managed flagship fund, the Nest Fund, trades (long & short) the top 20 liquid digital assets with the objective to compound investor capital over complete market cycles with better risk-adjusted returns than a buy and hold approach. The system includes a variety of algorithmic models including trend-following, cross-sectional momentum, and short-term supply/demand imbalances, all built on cutting-edge proprietary technology. Strix recently launched the Aurora Fund, a market neutral strategy that generates yield from emerging opportunities in the decentralized finance (DeFi) universe. Strix Leviathan brings world-class risk management and technology acumen to digital asset trading.
About Wintermute
Wintermute is a leading global algorithmic trading firm and one of the largest players in digital asset markets. With an average daily trading volume of over $5bn, Wintermute facilitates OTC trading of 350+ tokens and provides liquidity across 80+ centralized and decentralized exchanges. Wintermute is an active player in the ecosystem, and invests in early stage DeFi projects, provides market making services for high profile blockchain projects, and overall supports builders of decentralized finance.
Holdings of cryptocurrencies and other digital assets are speculative and involve a substantial degree of risk, including the risk of complete loss. There can be no assurance that any cryptocurrency, token, coin, or other crypto asset will be viable, liquid, or solvent. No Anchorage communication is intended to imply that any digital asset services are low-risk or risk-free. Digital assets are held in custody by Anchorage Digital Bank National Association and are not guaranteed or FDIC-insured. Any depictions of simulated or past loan performance are not necessarily indicative of future results.
Anchorage Welcomes Five Prominent Digital Assets Exchanges, Liquidity Providers, and Liquidity… was originally published in Anchorage Digital on Medium, where people are continuing the conversation by highlighting and responding to this story.
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