Ledger, a company that specializes in offline private-key storage, has partnered with crypto custodian Etana Custody to provide secure and regulated cryptocurrency custody services to institutional clients in the United States. The collaboration aims to facilitate the holding of digital assets by institutions and enhance investor confidence in the market. Through the partnership, clients can access over 1,800 tokens supported by Ledger, expanding their investment options in the crypto space without having to maintain their private keys. Additionally, the partnership will segregate clients’ funds and reduce counterparty risks.
Institutional investors have become increasingly aware of the importance of adhering to crypto regulations, especially amid a regulatory crackdown on the digital assets industry in the United States. The Securities and Exchange Commission (SEC) has imposed penalties, including fines, on more than a dozen crypto trading and lending firms in the first few months of 2023.
As part of the partnership, Etana is now able to act as a settlement party to counterparties in a given transaction. This allows them to trade digital assets without directly putting up their money to one another, thus eliminating the risk of deals falling through. Etana CEO Brandon Russell explained that this feature prevents clients from doing the “Hokey Pokey,” or putting their money in and taking it out before a trade settles, leaving the exchange with the settlement risk.
The collaboration between Ledger and Etana is expected to provide a more secure and efficient way for institutional clients to invest in digital assets. By offering regulated cryptocurrency custody services, the companies hope to attract more institutional investors to the crypto market, which could lead to increased adoption and growth.
Ledger has been making moves to expand its presence in the crypto industry. In a recent funding round, the company raised most of the $109 million it was seeking to develop new products and services. The company has also been working on improving its hardware wallet offerings, which are widely used by crypto investors to store their private keys offline.
Overall, the partnership between Ledger and Etana Custody is a positive development for the crypto industry. As more institutional investors seek to invest in digital assets, the need for secure and regulated custody solutions will continue to grow. The collaboration between these two companies is a step in the right direction towards meeting this demand and driving growth in the crypto market.