Fireblocks is trialing a hybrid custody solution that its clients can use to safeguard their crypto even while trading on exchanges, according to a Financial News report on Friday.
The proposed platform has been conceived as an “off-exchange” service. This platform will enable clients to keep their crypto assets in custody while trading on exchanges. The funds will only move out of the custody platform when the trades need to be settled. Huobi and Deribit have been added as partners in the project.
Fireblocks Senior Vice-President of financial markets Stephen Richardson said the arrangement could help customers minimize their exposure to crypto exchanges. Richardson added that institutional traders were wary of keeping crypto tokens on exchanges following FTX’s November collapse, the report added.
Fireblocks joins a growing list of firms offering such hybrid custody services. Institutional crypto custodians like Copper and Fidelity Digital Assets also have such off-exchange platforms as part of the service suite. Binance Custody also has a similar product that enables clients to mirror their assets held in cold storage to their trading accounts. The assets do not leave the custody platform until the trade is settled.
Source: https://www.theblock.co/post/213283/fireblocks-testing-off-exchange-crypto-custody-solution?utm_source=rss&utm_medium=rss