Standard Custody teams up with GSR Markets to introduce an innovative escrow solution mitigating counterparty risk in digital asset transactions, promoting institutional adoption.
Key Points
- Standard Custody & GSR partner to offer innovative escrow solution, tackling counterparty risk in digital asset transactions.
- Solution segregates collateral in secure escrow accounts, ensuring instant and safe asset settlements, reducing credit and settlement risks.
- Standard Custody brings custody expertise, GSR contributes a decade of digital asset liquidity experience.
- Collaboration addresses custody and liquidity concerns, boosts security and efficiency in digital asset transactions, fostering institutional adoption.
In a bid to address the growing concerns surrounding counterparty risk in the digital asset market, Standard Custody & Trust Company, LLC has joined forces with GSR Markets Limited.
This strategic partnership aims to enhance the security and efficiency of digital asset transactions by offering an innovative escrow solution.
Press Release: @StandardCustody and @GSR_io have joined forces to introduce innovative #Escrow solutions in #DigitalAssets. Collaboration aims at reducing counterparty risk and further elevating standards for reliability and efficiency.
Read more: https://t.co/xnxAqbn2aP pic.twitter.com/2NeT09p2C5
— Standard Custody (@StandardCustody) August 30, 2023
Innovative Escrow Solution to Mitigate Counterparty Risk
The collaboration between Standard Custody and GSR introduces a unique escrow solution that seeks to alleviate counterparty risk.
By segregating collateral from trading partners and placing it in a secure escrow account, this solution enables instant and secure asset settlements.
Jack McDonald, the CEO of Standard Custody, emphasizes the significant reduction in credit and settlement risk for clients resulting from this alliance.
Rich Rosenblum, Co-Founder and President of GSR, highlights how this partnership will play a crucial role in raising market standards.
By securing the existing marketplace and facilitating secure transactions, this innovation promotes further institutional adoption of digital assets.
Expertise in Custody and Liquidity Solutions
Standard Custody, a qualified custodian regulated by the New York Department of Financial Services, brings its expertise in custody services to the partnership.
With a platform offering end-to-end encryption and distributed trust protocols, Standard Custody ensures the secure management of secret keys.
GSR Markets Limited, on the other hand, has a decade of experience in digital asset liquidity.
As a trusted provider of trading solutions, GSR offers liquidity for various stakeholders in the cryptocurrency ecosystem, including token issuers and institutional investors.
Concluding Thoughts
Through their respective areas of expertise, Standard Custody and GSR collaborate to create a comprehensive solution that addresses both custody and liquidity concerns in the digital asset market.
This strategic partnership between Standard Custody & Trust Company, LLC and GSR Markets Limited not only enhances the security and efficiency of digital asset transactions but also propels institutional adoption by reducing counterparty risk.
By combining their custodian and liquidity capabilities, this collaboration is poised to elevate market standards and drive further growth in the cryptocurrency ecosystem.
