Crypto custody entity Anchorage Digital has reportedly established an exchange custody network with five virtual asset trading platforms, to isolate institutional client funds into regulated asset vaults. 

Specifically, via the announcement, the custodian entity reportedly revealed details of its freshly forged alliances with Binance.US, CoinList, Blockchain.com, Strix Leviathan, and Wintermute. Per Anchorage, this will equip institutions with direct access to a vast array of trading pairs.

The custody entity additionally claimed that the establishment of the custody network will assist institutions such as Registered Investment Advisors to fulfill their duties to their clients in a safe environment, via holding assets through a custodian, all throughout the life-cycle of a trade. 

Moreover, this will also take some kind of burden off the clients, knowing that their assets are not kept in hot wallets, leaving them more vulnerable to attacks.

Diogo Mónica, the co-founder and president of Anchorage, also remarked that the development will make it possible for the sector to extend above the confines of “hodl.”

Head of Anchorage Digital, Nathan McCauley, additionally emphasized that there should be a distinction between exchanges and custodians, just as it is for more conventional finance structures. He noted that should the crypto sphere desire to achieve an increased level of trust from institutional clients, it has to “follow the same playbook” as traditional finance.

The establishment of the exchange custody network was carried out months following the announcement from the United States Office of the Comptroller of the Currency (OCC) regarding its intention of pursuing cease and desist proceedings against Anchorage, for possible violations of Anti-Money Laundering regulations. 

Previously, the custody entity revealed that they are putting in extensive efforts to strengthen the aspects that were identified by the OCC.