Digital Asset Exchange OTCXN Adds Hong Kong Regulated, Aegis Custody, As A Crypto Custodian
OTCXN, an institutional-grade platform for crypto investors, announced the addition of Aegis Custody to its list of digital asset custodians on Sept 12. The recent partnership aims to boost the adoption of digital assets trading among institutional investors while increasing the liquidity across the market. Furthermore, Aegis Custody secures the digital assets using multi-signature wallets that decentralizes the trustees control over the users’ funds.
The Hong Kong regulated custodian company, Aegis, is eligible to secure digital assets across the global institutional market. A Chinese international asset manager, Fosun International Limited, backs the custodian by providing insurance and liquidity for the over the counter traders. While US customers are out of bounds in the digital asset trading industry, the report hinted the company is looking for “Qualified Custodian” status from US regulators soon.
New Market Model for Institutional Traders
The partnership with Aegis Custody will provide customers on OTCXN a peer to peer platform with a trade to settlement process that eliminates the need for a third party to facilitate the trade. Furthermore, OTCXN platform is built on a blockchain offering traders a new model to increase liquidity and security in both the digital asset market and forex.
Building on blockchain technology reduces the counterparty risk due to its trustless properties. This allows the institutional investors and other retail crypto traders to
“eliminate the settlement risk inherent in traditional systems.”
More Custodians Partnered with OTCXN
Before signing Aegis to its network, OTCXN partnered with two US based custodians regulated by the SEC, Kingdom Trust and Prime Trust. The move to add a third partner is aiming to widen the scope of customers and institutional traders on the digital asset exchange. The two US based custodians are aiming to provide institutional and operational digital assets management for OTCXN customers. Furthermore, the companies aim to facilitate clearing and settlement of OTC block trades on the platform.
Earlier in the year, OTCXN added BCause ecosystem, one of the biggest institutional mining companies in the Americas to provide institutional trading on the platform. The ecosystem features regulated spot exchange, derivatives exchange and a clearinghouse custody service for OTCXN users.