Anchorage rolls out platform to reduce crypto trading counterparty risk
The crypto bank’s new CMS platform lets institutions trade on crypto venues while keeping assets in regulated custody and reducing pre-funded accounts.
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.