As recently reported in TechCrunch, Binance.US has been authorized to transfer custody of its cryptocurrency assets to Aegis Custody and its entity Aegis Trust under the terms of a temporary restraining order issued in an ongoing investigation involving the leading cryptocurrency exchange.
Aegis Custody is a US-fully licensed custodian through its entity Aegis Trust, a fully licensed and insured digital asset custodian that provides secure, institutional-grade, proprietary, integrated custodial blockchain solutions. Its custody services cover over 4,000 cryptocurrencies, including native coins, stablecoins, non-fungible tokens, and blockchain-based tokens. It provides a comprehensive range of platform-driven custodial services, encompassing crypto and fiat custody, regulated staking, fiat on- and off-ramping, and asset tokenization. This ensures seamless access to web3 with robust custodial support.
“Qualified custodians play a key role in fostering and maintaining trust within the crypto community,” says Serra Wei, founder and CEO of Aegis Custody and Aegis Trust. “As our industry evolves, our mission is to continue to prioritize security and regulatory compliance in a way that allows us to provide increased trust and transparency for our clients.”
Wei is a cryptocurrency finance executive, investor, and entrepreneur with a blend of experience in both legacy and blockchain-based financial assets. She has worked with Goldman Sachs and has been an active investor in the digital asset space.
The role and qualified custodian for custodial staking
As for the recent SEC ruling proposing to expand and enhance the role of qualified custodians when registered investment advisers custody assets on behalf of investors, Wei says that Aegis Trusts welcome this development. “We believe that the role of a qualified custodian is absolutely essential in providing a secure and trustworthy investment experience for our clients,” she says.
The restraining order — which names Aegis as a third-party custodian — was filed in the US District Court for the District of Columbia on June 12, 2023, as part of a civil action initiated by the US Securities and Exchange Commission.
Regarding the ongoing custody and control of Binance.US customer assets, the order says BAM Trading Services “may transfer custody of Customer Crypto Assets deposited, held, traded, staked, and/or accrued through BAM Trading’s staking-as-a-service program ‘Staking Assets’ to the third-party custodian Aegis.”
The need for regulated staking through a licensed and regulated custodian is growing. Aegis collaborates with certified staking providers to allow its customers to interact directly with the blockchain, ensuring that the rewards are automatically distributed without any interference, making the process more secure and transparent.
In addition, to store clients’ digital assets in a secure and compliant manner, Aegis does not commingle customer tokens, and the amount of staking rewards service fees charged on its validators remains open and transparent. Most importantly, Aegis’ customers are subject to bonding and unbonding periods set by the staking protocols.
Wei has been outspoken about the important role that secure crypto ecosystems play in encouraging broader crypto adoption. In a Bitcoin Insider article published in August 2023, Wei identified secure ecosystems as critical for gaining the trust of financial institutions, which she said will drive the next wave of crypto adoption.
While US regulators continue to be concerned about the widespread adoption of crypto, regulators elsewhere seem ready to promote it. In Hong Kong, for example, a statement issued by Financial Secretary Paul Chan in April 2023 encouraged institutions to support the growth of the crypto sector, saying now is “in fact the best time to promote the development of Web3.”
“While some regulators are clearly more comfortable than others with ushering in the age of crypto, all agree on the importance of secure ecosystems,” Wei said. “This means institutions that want to benefit from the features blockchain brings to the world of finance must move now to develop higher security standards.”
Institutions looking for secure custodial options should seek out the types of features that Aegis provides. By bringing together intuitive digital asset management and institutional-grade security, Aegis supports an ecosystem that is accessible, functional, user-friendly, and secure.