British exchange Archax launches digital asset custody service

UK-regulated digital securities exchange Archax has launched a digital asset custody service.

Archax's proposed custodial service for the crypto market will use technologies from Swiss security provider MPC Metaco and IBM Cloud.

In order to qualify as a regulated company, Archax must comply with the strict requirements of the UK Financial Conduct Authority (FCA), ensuring that own and depositary assets are accounted for separately.. This means that in the event of the bankruptcy of the company, the assets held in custody will not be included in the bankruptcy estate.

In addition, the regulator required Archax to maintain full technological control over custody technologies and security keys, and also introduced a ban on any form of outsourcing.

Earlier, DekaBank, one of the largest German investment funds, chose the Harmonize platform and entered into a partnership agreement with the Swiss Metaco to provide crypto asset management services.