Cryptocurrency exchange Seed CX is launching a new digital asset wallet solution that features on-chain settlement.
Based In Chicago, Seed CX claims to be the first licensed crypto exchange to offer institutional trading and settlement for both spot market and derivatives regulated by the Commodity Futures Trading Commission (CFTC). It provides institutional investors and professional traders with the market structure and technology they need to confidently add cryptocurrencies to their portfolios and investment strategies.
Seed CX’s new crypto wallet solution, developed by the company’s settlement subsidiary Zero Hash, aims to be more stable, more transparent and more secure to give institutional investors the same degree of operational confidence that they have with more traditional financial and commodity markets. Users will receive a unique wallet instead of having their assets carried within a single omnibus wallet, or across multiple shared wallets, which is the common approach taken by other exchanges.
According to Seed CX, this approach will allow Zero Hash to synchronize its internal accounting layer with the blockchain, with deliveries and settlements being posted to the public network for immutable record-keeping. As a result, users will be able to independently verify all deposits, withdrawals and other transactions associated with their wallet. In addition to the benefit of increased visibility, the comapny said that spreading digital asset holdings across multiple wallets reduces the surface area for bad actors looking to attack.
“Zero Hash has learned a great deal from the shortcomings and failures of other exchanges,” said Julie Myers-Wood, Zero Hash public director. “Giving participants full visibility into their own unique wallets is a big part of that, but it’s not enough. Zero Hash has a wide range of operational controls designed to provide investors with a first-of-its-kind experience.”
Edward Woodford, co-founder and CEO of Seed CX, said that Seed CX is purpose built to provide the security and stability institutional investors demand, and the cost-efficiency and performance that large liquidity providers require.
“On-chain settlement helps Seed CX provide trading firms with an experience that is both cost effective and high performance, while also providing the operational and financial security investors demand,” Woodford said.
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