Fresh off of its $28.5M raise in late 2022, Archax has now announced the launch of a ‘regulated digital asset custodian'. This service, which is stated as having been run ‘in stealth mode for a while now' is one of the core pieces in the growing Archax ecosystem, which has yet to fully launch.
Archax, which has been in development for years now, is set to be particularly notable as it looks to provide a comprehensive regulated platform which supports more than just cryptocurrencies, but NFTs, digital securities, FIAT, and more traditional asset classes.
What the Service Entails
In the past, Archax has relied upon third-party services, like those from Unbound Tech, for its custodial solutions. As markets have matured, along with the needs of the exchange and its users, Archax states that it has now turned to a partnership with METACO to build and deploy its own offering atop the IBM Cloud.
The company indicates that this service, “Provides segregated, insolvency-remote structure and covers traditional assets as well as unregulated cryptocurrencies”. This particular service was built specifically for professional investors and institutions.
Upon announcing this new service, Archax CEO, Graham Rodford elaborated on the need for such an offering in the wake of recent events involving the digital asset market. He states,
“The recent turbulent times in crypto markets emphasise the need for credible and secure custody solutions, run by businesses with strong corporate governance, and with all the right controls and processes that institutions both need and expect. We do just that – operating our service using a fully segregated and insolvency-remote structure to ensure client assets are always held and backed 1 to 1 and so are safe. Although some assets, like cryptocurrencies, are unregulated, we operate our solution in the same regulated way, wherever possible, regardless of asset type, so ensuring unparalleled levels of service and security for all types of digital asset.”
Archax was founded in 2018, and is based out of London, England. Notably, Archax is authorized and regulated by the Financial Conduct Authority (FCA). Its growing ecosystem will eventually be comprehensive in nature, supporting digital issuances, trading, custody, and more.