Anchorage rolls out platform to reduce crypto trading counterparty risk

Anchorage Digital launched a settlement platform that allows institutions to trade on crypto venues while keeping assets in custody at its federally regulated bank, which it said will help manage counterparty and operational risks.

According to Monday’s announcement from the company, Coordinated Multiparty Settlement (CMS) connects trading venues, prime brokers and institutional clients through a shared settlement layer while keeping assets at Anchorage Digital Bank throughout the trade lifecycle.

Anchorage said CMS verifies funding obligations and coordinates settlement across participants, reducing the number of asset transfers needed to complete trades. The company said the system is designed to reduce the need for pre-funded exchange accounts, a common practice in crypto markets.

In a Monday X post, Anchorage said much of crypto trading still takes place on offshore platforms where "a single platform acts as exchange, custodian, and settlement agent" and client assets are often commingled and titled to the exchange.

Source: Anchorage Digital on X.com

Under the CMS model, prime brokers manage client balances and credit relationships, trading venues act as matching engines and Anchorage provides custody and settlement services.

The rollout will begin with foreign exchange trading platform Spotex, which Anchorage said processes billions of dollars in daily volume, with additional venue integrations under development.

Related: Anchorage Digital, Mexico's Grupo Salinas partner on stablecoin cross-border settlement

Institutional trading infrastructure continues to evolve

Financial institutions and digital asset companies are fast expanding infrastructure for tokenized assets and institutional trading, with the Canton Network emerging as one focal point for those efforts as firms explore blockchain-based settlement. 

In December, DTCC partnered with Digital Asset and the Canton Network to support the tokenization of DTC-custodied US Treasury securities, with plans to expand the initiative to additional asset classes. Two months later, Fireblocks integrated the network, enabling banks, custodians and asset managers to custody and settle assets on a blockchain built for regulated financial markets.

Banks are also investing in digital asset custody and market infrastructure. In May, Standard Chartered agreed to acquire Zodia Custody while spinning out Zodia Solutions, a standalone platform serving institutional digital asset clients. The transaction consolidates the bank's custody operations while creating a separate company focused on services for financial institutions.

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