Prime Trust Crypto Custody Provider Gets Investment From OKCoin Crypto Exchange
OKCoin Crypto Exchange Invests In Custody Company Prime Trust
The cryptocurrency exchange OKCoin has recently invested an undisclosed amount of money in Prime Trust, a crypto custody provider company. The announcement was made by the CEO of Prime Trust, Scott Purcell, on a note sent to the clients of the company.
On the official announcement, Purcell said that OKCoin made a “nice” investment during the closed funding round and that it was the lead investor of the round. Some of the other companies to participate were Novablock Ventures, Gateway Blockchain Partners and Xsquared Ventures.
An Old Relationship
The relationship between OKCoin and Prime Trust is not new. Prime Trust serves as the fiat gateway of the company. In fact, last week the company has started to offer a new payment channel that allows customers to deposit their funds using Prime Trust and they will not have to pay any fees for a deposit (but will pay $35 USD for withdrawals).
Prime Trust is also set to launch a new token in partnership with the OK Group, a stablecoin which will be known as OKUSD. The token will work on the OKChain blockchain, which is reported to be at its final stages right now. After that, the company plans to launch its own decentralized exchange (DEX) on top of the chain.
About Prime Trust
The Nevada-based custodial has entered the market quietly last year, but it very successful so far. It offers cold storage options for big exchanges and individual clients as well. In line with the stocks and bonds market, the company decided not to charge for its custody services.
According to the CEO of the company, the idea was to offset the custody services with costs from other services that are being offered by the company. However, it is somewhat not very clear how the company is planning to make money.
For instance, these custodians from the mainstream financial market engage in several other activities, but Prime Trust still does not, so many people in the industry are puzzled with this. With the announcement of OKUSD, however, some people are starting to understand where the money may come from.
Initially, the company offered custody for Ethereum and ERC20-based tokens, but it has started to offer more interesting options with time later.