- SFOX is partnering with M.Y. Safra Bank to offer their traders deposit accounts that are in line with the Federal Deposit Insurance Corp.
- The partnership will enhance protection for traders as they will be able to hold funds in insured accounts listed under their names
- The Partnership will also improve trading by reducing the time required to make funds available for trading
This Tuesday, Bloomberg reported that SFOX, a leading dealer and trading system in the crypto market, is collaborating with M.Y. Safra Bank based in New York to give its traders deposit accounts supported by the Federal Deposit Insurance Corp (FDIC).
Partnership between SFOX and M.Y. Safra bank
SFOX is a prime dealer and trading system in the 208 billion US Dollars crypto market. This federal agency protects approximately 250,000 US Dollars per financial institution for bank customers. According to SFOX, this marks the first time FDIC-insured accounts which will be associated with a prime crypto dealer and allow traders to save funds in their accounts.
SFOX affirmed that the partnership not only makes funds more secure but it also reduces the time needed to make funds readily available for trading. Traders will also be able to access more than one exchanges such as Gemini and Kraken, ItBit and many others without having to pay and register on each of them.
Individual accounts is the solution
Danny Kim, the SFOX head of growth said that the singled-out accounts would offer protection for traders by allowing them to hold their cash under their names. Kim referenced the recent bankruptcy of Quadriga Fintech Solutions Corp., the Canadian market would have less impact if individual account structure would have been in place. He stated:
“When the court is trying to retrieve the money, they don’t know whose funds are whose.”
It has not been easy for the crypto market to appeal to mainstream investors as it is often linked to fraud, theft and regulatory infractions. For instance, Vancouver based Quadriga owes 115,000 clients approximately 193 million US Dollars in cash and cryptocurrencies following the death of the founder, Gerry Cotton last year. Then come May 7, Binance reported an attack where hackers withdrew 7,000 Bitcoins worth 40 million US Dollars. And on the other hand, New York attorney general has accused Bitfinex of hiding the loss of approximately 850 million US Dollars in client and corporate cash.