OTCXN has announced that it has signed Prime Trust to serve as a neutral, third-party custodian of assets for trading entities and exchanges that use OTCXN technology to facilitate clearing and settlement of OTC block trades and cross-exchange trading. This is the second addition of a third-party custodian this week, earlier it was announced that Kingdom Trust had also joined.
Prime Trust is a chartered, regulated and insured trust company with full fiduciary powers and AML/KYC procedures supporting both US and international clients, OTCXN says. It adds that Prime Trust will play a key role in supporting the expansion of the OTCXN network by providing clients with safe, capital efficient access to global liquidity through OTCXN’s market leading trading platforms.
“Bringing Prime Trust on-board to use OTCXN’s Custodian Desk platform to support our mutual institutional clients trading digital assets such as cryptocurrencies over OTCXN’s unique network, is an exciting development,” says Rosario Ingargiola, CEO and founder of OTCXN. “Prime Trust is one of only a few regulated US entities offering neutral custody services in fiat and cryptocurrencies. They stand out for their experienced management team with deep securities and fiduciary industry backgrounds, hot and cold hardware-based wallets, and client asset safety.”
Prime Trust is a financial institution dedicated to the blockchain industry that, as an SEC Qualified Custodian, provides custody of tokens, fiat and other alternative and traditional assets, as well as funds processing, AML/KYC compliance, and transaction technology for the new digital economy.
“OTCXN is an exciting and well thought-out institutional-grade digital asset trading network unlike anything we’ve worked on until now,” says Scott Purcell, Prime Trust’s CEO and chief trust officer. “OTCXN’s strategic technology aligns perfectly with our continued mission to support an ever-evolving digital economy; and, we are excited to play a role in bringing more infrastructure to the industry.”
OTCXN says its solution has strong appeal to custodians that hold crypto-assets for institutional clients because the cryptocurrency is always held in deep, cold storage, rather than being held at an exchange or being in-flight, as it is when traded over-the-counter. “The OTCXN approach significantly increases safety for institutional clients and reduces administrative overhead for custodians with clients engaged in active trading,” the firm says. “The solution provides custodians with continuous net settlement reporting, with point-in-time snapshot features and workflow tools to support periodic net settlement movements between custodial accounts.”
OTCXN has launched its OTC Block Trading platform which delivers an institutional RFQ-style workflow with instant, atomic clearing and settlement of trades against provable assets at a custodian, and no initiator settlement risk. Later this year, the firm says it will be launching a matching engine, LiquiMatch, as both a dark pool and central limit order book-style exchange for cryptocurrencies. Clients of custodians on the network can access liquidity across all OTCXN trading platforms with a single account at a custodian.