Crypto Trading Firms Will Get Access to FDIC-Insured Deposit Accounts Per SFOX, M.Y. Safra Bank
SFOX has been making efforts to reduce the risks that investors have with their crypto transactions, using its prime dealer platform that has been around for five years.
However, in a push to improve that safety, SFOX recently established a partnership between themselves and M.Y. Safra Bank, which will allow them to develop FDIC-insured deposit accounts for crypto traders, in the same way that traditional traders have, according to TheBlock.
SFOX further added that creating these types of accounts for crypto traders is another step towards their goal of reducing risks for crypto investors.
In a press release, SFOX CEO Akbar Thobhani said that their newly partnered bank has shown their performance with “providing custom banking solutions to institutions and HNWIs.” With this performance in mind, SFOX believes that the bank is “the ideal choice” to making progress in establishing “a truly frictionless and reliable trade experience” for crypto traders.
Before now, according to SFOX, banks have been aggressive in their denial of linking accounts with cryptocurrency trading in any capacity. Therefore, the FDIC-insured accounts are a major milestone for the crypto industry, allowing them to be insured for up to $250,000 for the first time ever.
The “segregated accounts” will be maintained separately from the users’ exchange accounts but will make it possible to hold their funds under their name in a bank account. Since SFOX is also establishing a new facility with M.Y. Safra, the amount of time that trade transactions take will decrease exponentially.
CEO Jacob M. Safra has already stated that he believes that the move establishes the bank as an institution that focuses on innovation and security simultaneously. He added that the partnership “underscores our commitment” in exploring and advancing the finance industry.