Institutional cryptocurrency prime dealer SFOX has partnered with a New York bank to offer state-insured bank accounts for traders, the company confirmed in a blog post on May 14.
With Safra, SFOX traders will now have access to insurance through the United States government’s Federal Deposit Insurance Corporation (FDIC) worth up to $250,000. Safra Bank represents another step forward in our mission to provide our clients with the best place to trade cryptoassets,” CEO Akbar Thobhani commented in the blog post. 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.”
As part of the deal, other features will also become available to institutional traders, including holding funds in named bank accounts, which the companies say further reduces counterparty risk.
As bitcoin (BTC) prices reach yearly highs, record trading volumes have been reported by Bitcoin futures provider CME Group, while the Grayscale Bitcoin Investment Trust continues to trade at around a 25% premium over standard market rates.