Blockchain-based capital markets infrastructure company OTCXN said 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. Prime Trust is a chartered, regulated and insured trust company with full fiduciary powers and AML/KYC procedures supporting both US and international clients.
The biggest problem for institutions in the cryptocurrency space prior to OTCXN’s launch has been the lack of a clearing and settlement solution that eliminates trading counterparty and settlement risk while connecting all global liquidity providers and exchanges. OTCXN’s multi-custodian solution solves this problem and delivers global liquidity access with a single account at the preferred custodian of a trading desk or exchange.
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. 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,” stated Rosario M. Ingargiola, CEO and Founder of OTCXN.
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. As a blockchain-driven trust company, its mission is to provide exchanges, portals, platforms, brokers, real estate syndicators and direct-issuers with best-in-class solutions to seamlessly meet the needs of their securities offerings, as well as their secondary markets.
“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.”
The OTCXN 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 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, OTCXN will be launching its high-performance 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.
Any OTC desk, liquidity provider, fund or exchange can join the OTCXN network by holding a portion of Fiat/Crypto trading assets at a custodian, including Prime Trust.