Cryptoasset dealer SFOX (San Francisco Open Exchange) is partnering with M.Y. Safra Bank to offer its traders and investors federally insured accounts to hold their funds. The move empowers institutional investors and other traders to carry out faster cryptocurrency transactions and meet custodial obligations.
The partnership marks the first time the Federal Deposit Insurance Corporation {FDIC) has interfaced with a cryptoasset prime dealer.
Operating as an agency of the US government, FDIC provides insurance for account deposits. It has become a point of competition among banks and financial institutions as customers expect their funds to be protected against losses.
SFOX targets institutional investors, including crypto hedge funds and family offices moving large amounts of capital. Approved customers will benefit from FDIC insurance of up to $250,000 in accounts that are not co-mingled with other SFOX assets. Based in New York, M.Y. Sara Bank will hold the segregated accounts in customers’ names, reducing counterparty risk and facilitating easy access to crypto markets.
SFOX CEO Akbar Thobhani says,
“SFOX’s partnership with M.Y. Safra Bank represents another step forward in our mission to provide our clients with the best place to trade cryptoassets.”
“M.Y. Safra’s Bank proven track record of providing custom banking solutions to institutions and HNWIs made them the ideal choice for taking SFOX trading one step closer to the goal of a truly frictionless and reliable trade experience across all cryptoassets.”
M.Y. Safra Bank CEO Jacob Safra says,
“M.Y. Safra Bank’s partnership with SFOX underscores our commitment to spearheading the best solutions within the newest domains of finance.”
SFOX sources over 20 exchanges, over-the-counter brokers and liquidity providers globally to offer the most competitive prices for Bitcoin and other leading cryptocurrencies. Customers can access their accounts through the SFOX platform on sfox.com.
SFOX was founded in 2014 and has reached over $11 billion in transaction volume, raising $23 million to date from Y Combinator, Digital Currency Group and Khosla Ventures, among other investors.
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