How Registered Custody Providers Protect Digital Assets - Brandon Russell, CEO Etana Custody

December 5, 2022 by
Etana Team

"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.