CEX.io, the London based crypto exchange has announced its partnership with Silvergate Exchange Network (SEN) which is a USD payment solution for crypto customers.
Speaking to CoinDesk, the exchange’s worldwide head of operations who also doubles up as the head of compliance of the US branch, Steve Gregory, explained that SEN has the highest standard of compliance in the US crypto market. He stressed that joining Silvergate will allow the crypto exchange to attract more institutional investors.
By joining the SEN, the bank will enable CEX.io clients to easily deposit and withdraw fiat, US dollars, from their accounts in real-time. This means that clients will have an opportunity to easily get in and out of the crypto space if they see increased volatility in the market. Institutional clients are now able to transact 24/7 without having to conduct wire transfers.
CEX.io opened its US branch in 2015 opening its head office in the US in Jersey and has since grown to obtain about 17 state licenses where it offers crypto exchange services. At the moment the exchange has about 250 employees and its services can be found in about 180 nations.
Gregory, who previously worked as Gemini compliance head, explained that he was delighted that CEX.io had joined the club of exchanges serving institutional clients.
Apart from enabling instantaneous fiat funds transfers, Silvergate is also planning to launch crypto-collateralized loans where only institutions like CEX.io that have joined SEN will be considered.
In the recent past, CEX.io also joined Prime Trust as well as Signature bank which also provides banking services for crypto-based companies. Gregory explained that Signature has a limitation in that it does not process transactions below $50,000. In this case, joining Silvergate makes sense as the exchange will now utilize the SEN for such transactions.
Gregory also revealed that the exchange has applied for a BitLicense and held various meetings with the regulator, NYDFS, and the approval is likely in a few months.