"As markets have evolved and matured, third-party custody allows clients to mitigate counterparty risk by holding their assets away from the exchange." - Brandon Russell, CEO, Etana Custody.
Individuals have tended to self-custody. But recent events in the crypto space have shined a spotlight on the need for regulated 3rd party custody solutions to protect digital assets. One of the most significant advantages of using a SOC-regulated digital custody service is that your assets are held away from the exchange, which protects against theft, key loss, and business failure.
A decentralized custody solution holds assets away from the exchange yet collateralized so that you can perform a trade, net settle, and your assets can be moved on immediately to another exchange.
Clearing and settlement through a digital custodian speaks to two things.
One is mitigating counterparty risk, which means you do not have to leave an asset on an exchange.
And the second is the efficiencies that capital brings.
Clients who use a digital custodian get capital efficiencies, good market access, and custody, all in a regulatory, security, and SOC-compliant place. It is the only marketplace that allows you to plug into everybody from a centralized deposit rate.
Click here to learn more about securing your digital assets with Etana Custody.