Crypto Prime Dealer SFOX Unveils FDIC-Insured Accounts

THE NITTY GRITTY

Approved SFOX users can access FDIC-insured accounts with M.Y. Safra Bank through SFOX’s platform. Similar to Coinbase, they will receive that same insurance of up to $250,000, subject to applicable limits.

In a medium post about the news, SFOX states the partnership is hoped to:

• reduce counter-party risk
• increase ease of access to emerging crypto markets
• enable investors to keep their funds in their own name with the bank.

SFOX pioneered the crypto prime dealer model in 2014 to reduce traders’ exchange counter-party risk while also giving them access to crypto assets from exchanges around the world. It does away with the hassle of opening and managing multiple trading accounts while still allowing traders to capitalize on global liquidity.

These results are needed for mass adoption because they’ve been among the factors that have kept potential crypto investors and traders at bay.

SECURITY IS ESSENTIAL

A major determining factor behind the mass adoption of cryptocurrency hinges on security. SFOX charges that its model makes funds more secure. Also, the partnership will reduce the time required to make funds available for trading, making trading more efficient.

These are all issues that have delayed mass adoption.

The SFOX blog post states:

“These product features are especially transformative for funds and institutional investors, who will be better equipped to fulfill their custodial obligations while still being able to easily access their funds when they need to trade quickly.”

According to SFOX CEO Akbar Thobhani, M.Y. Safra’s Bank was attractive because of its track record of providing custom banking solutions to institutions.

CONCLUSION

With some legitimate rumors of cryptocurrency circulating and skepticism still existing on the cryptocurrency space, this added security should seemingly increase adoption.