Pure Digital is developing an OTC marketplace for cryptocurrencies that targets banks. Today it said it had conducted a live test transaction with Zodia Custody, the solution developed by Standard Chartered and Northern Trust. Both organizations are based in London, with Zodia getting regulatory approval from the FCA in late July. To date, only nine firms have received crypto-asset registration by the FCA.
“Collaboration between custodian and marketplaces is key in developing a sophisticated cryptoasset market that meets institutional requirements and standards,” said Maxime De-Guillebon, Zodia’s CEO.
Back in July, BNY Mellon joined a consortium of banks working with Pure Digital on its planned institutional digital asset solution. The custodian bank announced the creation of its own digital asset division in February and invested in custody technology partner Fireblocks in March.
Meanwhile, Pure Digital has adopted State Street’s Currenex foreign exchange platform, which is being adapted for digital assets.
Pure Digital’s aim is to create an interbank market for digital assets, similar to the institutional foreign exchange markets. In other words, to replicate the structure, liquidity and standards.
It’s not the only one. Another London-based startup, Cobalt, which serves the FX markets with middle office solutions and has a digital asset solution is also backed by Standard Chartered.