Paxos crypto company adds custody service for institutional firms
Paxos runs a crypto exchange and over-the-counter trading desk, and is looking to leverage its crypto-custody business to lure trading volumes to its venue.
It’s a move that Paul Ciavardini, the director who oversees OTC trading at the firm, says looks a lot like how Goldman offered prime brokerage services to hedge funds that turned into big profits for its trading business.
“I see the custody business doing something similar here [to what Goldman did],” Ciavardini said. “It acts as a conduit and translates into business on the trading and exchange side. It’s just all about getting them comfortable with the custody.”
Many market observers have said that in order for large institutional firms to get comfortable trading Bitcoin, there need to be reputable custody offerings to safeguard holdings.
Paxos’ chief executive Charles Cascarilla said the OTC desk sees nine-figure deals.
State of New York issues BitLicense to Bitcoin storage company
New York’s Department of Financial Services announced that it had granted a virtual currency license to Xapo Inc. a digital financial services company offering Bitcoin products and services.
“Xapo will be authorized to offer a digital wallet and a vault service, which is intended as a safe and insured method to store bitcoins” the publication reads.
ItBit Exchange adds 4 new cryptos for investors
Cryptocurrency exchange itBit says it has been approved by the New York Department of the Treasury (NYDFS) to include four major cryptocurrencies in its trading and custody services.
In addition to Bitcoin, itBit will now offer custody, escrow and over-the-counter (OTC) trading services to Bitcoin Cash (BCH), Ethereum (ETH), Litecoin (LTC) and stellar lumens (XLM) with platform trading to follow, according to a press release ,
As the first company approved by NYDFS as a licensed New York-based cryptoexchange, its recent admission has set new standards for potential exchange platforms in that state.
«We are committed to the growth and evolution of this ecosystem,» said Charles Cascarilla, CEO and co-founder of itBit.
Commenting on the company’s relationship with DFS, Carcarilla CoinDesk said in an email that “DFS has been very innovative in the way it has looked at the crypto-asset ecosystem” and that it has turned to one looking forward to continued cooperation in the future.
In a renaming in 2016, the company was converted to the name Paxos, while the brand itBit was held exclusively for the exchange business. ItBit still functions as a separate division of others focused on advancing private blockchain projects such as bankchain.
Just last month, Paxos completed a $ 65 million Series B round of financing led by existing investors such as Liberty City Ventures, RRE Ventures and Jay Jordan.
As a cryptocurrency offering a variety of trading services, the expanded itBit license is expected to “open doors to individuals and institutions to access crypto assets beyond Bitcoin,” said Andrew Chang, COO of itBit
Kraken Daily Market Report for 13.06.2018
KRAKEN DIGITAL ASSET EXCHANGE
$273M traded across all markets today
Crypto, EUR, USD, JPY, CAD, GBP