Custody compared to Payment Service Providers
Perhaps the most common question we get from clients funding their exchange accounts is, “What does Etana do differently than typical payment service providers?”
This question most often comes up during Etana’s account creation process when we complete thorough know-your-client (KYC) and anti-money laundering (AML) checks. These checks ensure the safety and security of our platform and the assets we are holding. Often times these checks are more thorough than the checks the exchanges or your own bank will do!
While it’s a bit of extra work, the benefits are significant: your money is held safely in custody rather than transferring it to the exchange! While payment service providers (PSPs) take a fee to transfer your money directly to an exchange’s bank account, Etana’s custody services keep your money in insured, trusted, third party financial institutions. Etana’s global network of banks ensure the safety of your money by minimizing the risk of exchange hijacking or the exchange going out of business, losing the assets it's managing. Deposits are also insured by the government of the financial institution; for example the FDIC for US-held deposits. Additionally, Etana can receive deposits and hold them in 11 currencies* meaning you will not be looking at expensive foreign exchange conversion fees.
Once your deposit lands in your account at Etana, you are able to instantly transfer the funds to any of our exchange partners where you have an account. One security feature that makes Etana’s custody service special is that your money is not actually leaving your Etana account when you transfer it to an exchange: think of it more like we’re putting a hold on that amount in your Etana account and making it available for you to trade on the exchange. Only when you complete a transaction at the exchange and the assets you purchased are transferred does your money actually leave your account at Etana. It’s completely seamless for you, with a number of encrypted transactions happening in the background to keep your assets safe. Even further, your money is available to use with any of our exchange partners where you have an account, allowing free and instant transfers between them. This means your single account at Etana can fund any or all of our exchange partners where you have an account!
Etana has flat deposit and withdrawal fees of $35 USD or foreign equivalent, and if you’re a Kraken client, that deposit fee is always waived. There are never fees transferring funds between your Etana account and the exchanges.
For the peace of mind, safety and convenience, there’s no doubt to why so many people are using Etana’s custody service over the typical payment service provider.
For more information on Etana’s custody service, please reach out to our support staff. Or, create an account today by clicking the button below.
*As of September 8, 2020. For the current list of supported currencies, please see this Help Center article: Supported Currencies.