San Francisco-based cryptocurrency platform Anchorage Digital is launching its own payments network for institutional clients looking to dive deeper into digital asset trading.
Since the collapse of the virtual currency exchange FTX at the end of 2022,
The Anchorage Digital Trusted Liquidity and Settlement network, better known as Atlas, helps clear the transfer of cryptocurrencies between counterparties ranging from buy-side organizations such as asset managers and hedge funds to sell-side firms such as investment banks and brokerages. It is working. Atlas was launched in the early stages this year, but
Atlas was built on top of the company's “federally regulated infrastructure.”
“Our Federal Bank Charter expressly authorizes Anchorage Digital Bank to provide custody and settlement services and provides the highest level of regulation for Atlas participants who utilize Anchorage Digital Bank to participate in payments. It gives them protection,” McCauley said.
Over-the-counter payments, which are contracts negotiated between separate parties without going through a centralized clearinghouse, are one type of transaction supported by the Atlas network. Other payment types include crypto-to-fiat transactions as well as over-the-counter margin and collateral management and off-exchange payments.
The framework, which is integrated into Anchorage Digital's platform, will allow users to authorize payments and monitor payment status within a dashboard, McCauley said.
Since late last year, the company has been rolling out cryptocurrency-oriented products.
Bank of America's Merrill Lynch and Wells Fargo's securities arm are similarly increasing their presence in the digital asset space by serving interested wealth management clients.
John Wingate, CEO and founder of Dallas-based distributed ledger technology company BankSocial, said:
However, amid the regulatory crackdown on banks' cryptocurrency activities, pioneering institutions such as
“In the United States, banking regulators are encouraging banks to stay away from this area, and most banks have abandoned the idea of offering customers the option to buy, sell, or hold cryptocurrencies.”Digital Assets・Larry Prus, Managing Director of Emerging Technology Advisory, said: He described his practice at Memphis-based Strategic Resource Management in one paper.
As regulators become more informed about the nuances of the industry and draft clear regulations about what is and is not allowed, tools like Atlas and many others in the crypto ecosystem Institutional adoption is expected to increase.
“We are now able to trade with more counterparties and on a larger scale.…Our assets are not commingled and we are in complete autonomous control of our trading accounts.” Jeffrey Howard, managing director of currency trading firm Nonco, said in a press release on Thursday.
