Paxos crypto company adds custody service for institutional firms

posted 11 days ago
Paxos runs a crypto exchange and over-the-counter trading desk, and is looking to leverage its crypto-custody business to lure trading volumes to its venue.

It's a move that Paul Ciavardini, the director who oversees OTC trading at the firm, says looks a lot like how Goldman offered prime brokerage services to hedge funds that turned into big profits for its trading business.

"I see the custody business doing something similar here [to what Goldman did]," Ciavardini said. "It acts as a conduit and translates into business on the trading and exchange side. It's just all about getting them comfortable with the custody."

Many market observers have said that in order for large institutional firms to get comfortable trading Bitcoin, there need to be reputable custody offerings to safeguard holdings.

Paxos' chief executive Charles Cascarilla said the OTC desk sees nine-figure deals.
Tags: bitcoin, news