Crypto custody firm Anchorage Digital has recently formed an exchange custody network with five digital asset trading platforms to segregate institutional client funds from exchanges into regulated asset vaults. 

In an announcement, the custodian mentioned that it has partnered with Binance.US, CoinList, Blockchain.com, Strix Leviathan and Wintermute. According to Anchorage, this will provide institutions with direct access to a wide range of trading pairs.

The custody firm also noted that the formation of the custody network allows institutions like Registered Investment Advisors to meet their obligations to their clients in a safe environment by holding assets through a custodian, all throughout the life-cycle of a trade. Additionally, this gives clients some sort of peace of mind, knowing that their assets are not stored in hot wallets, which are prone to hacks.

Diogo Mónica, the co-founder and president of Anchorage, said that this allows the industry to move beyond "hodl." He tweeted:

Anchorage Digital CEO Nathan McCauley underscored that exchanges and custodians should be different, just as it is for more conventional finance structures. He noted that if the crypto space wants to gain more trust from institutional clients, the industry must "follow the same playbook" as traditional finance.

Related: Anchorage granted US's first national crypto bank charter

The formation of the exchange custody network came months after the United States Office of the Comptroller of the Currency (OCC) announced that it intends to pursue cease and desist proceedings against Anchorage for possible violations of Anti-Money Laundering regulations. Back then, the custody firm told Cointelegraph that they are working to reinforce the areas that were identified by the OCC.

Meanwhile, back in December 2021, Anchorage secured $350 million in a funding round led by investment bigwig KKR. With this event, the firm's valuation rose to more than $3 billion. This also marked the first time that the KKR has tried its hands at investing in the cryptocurrency space.