In a significant move to enhance security and reliability within the digital asset trading landscape, Standard Custody & Trust Company, LLC (“Standard Custody”), a regulated trust company and qualified custodian, has announced a strategic collaboration with GSR Markets Limited (“GSR”), a distinguished digital asset liquidity provider and trading firm. This partnership aims to bolster the escrow services offered to clients, further solidifying the integrity of their transactions.
As a limited-purpose trust company regulated by the New York Department of Financial Services, Standard Custody has established itself as a trusted name in safeguarding client assets within the burgeoning cryptocurrency space. Recognizing the paramount importance of ensuring the safety of digital assets, Standard Custody has developed an advanced escrow solution that streamlines the settlement process and enhances security. Through its partnership with GSR and other top-tier trading firms, Standard Custody’s clients can now benefit from this innovative and secure escrow service.
Reducing Credit and Settlement Risk
The core objective of this collaborative effort is to mitigate counterparty risk. This is achieved by segregating collateral from trading partners and placing it in escrow under the supervision of a qualified custodian, thus ensuring that even in the event of unforeseen circumstances such as bankruptcy, the assets remain safeguarded. Additionally, this joint venture introduces a frictionless and secure mechanism for the prompt settlement of digital assets, which is paramount in the fast-paced world of cryptocurrency trading.
Jack McDonald, CEO of Standard Custody, expressed his enthusiasm for the partnership, stating, “Standard Custody is pleased to be offering solutions that reduce risk. By collaborating with an industry leader like GSR, clients can confidently access liquidity with a leading provider while significantly reducing credit and settlement risk.”
Standard Custody & Trust Company, heralded as an institutional-grade custody and settlement platform for digital assets, stands out with its technological prowess and industry expertise. Founded and developed by experts from both cryptocurrency and traditional finance backgrounds, the company offers a robust blockchain-based infrastructure that ensures the end-to-end encryption and secure management of secret keys. A subsidiary of PolySign, Inc., Standard Custody’s integrated escrow trading platform streamlines the trading process by enabling direct buying and selling of digital assets from custody, thereby eliminating the need for external transfers and enhancing efficiency.
GSR brings a decade of profound experience in the cryptocurrency market to the partnership. With its involvement as a market maker, investment advisor, and multi-stage investor, GSR occupies a pivotal role in the cryptocurrency ecosystem. The firm provides spot and non-linear liquidity for a diverse clientele, including token issuers, institutional investors, miners, and leading cryptocurrency exchanges. GSR’s comprehensive involvement across various sectors positions it as a key player in facilitating the adoption of digital assets within both native crypto ventures and traditional financial institutions.
As the digital asset landscape continues to evolve, the partnership between Standard Custody and GSR is poised to set new benchmarks for security, efficiency, and market confidence. By melding the expertise of both entities, the collaboration aims to enhance the overall trading experience for clients while promoting the wider acceptance of digital assets within institutional circles.
