Crypto exchange Seed CX launches new wallet solution for institutional investors
Cryptocurrency exchange platform Seed CX has announced the release of a new digital asset wallet solution designed with the needs of institutional investors in mind.
The new wallet features on-chain settlement and aims to be “more stable, more transparent, and more secure than any other wallet solution.” Each Seed CX market participant will receive a unique wallet instead of having their assets held in a single omnibus wallet, or across multiple shared wallets.
According to the official release, the wallets will be provided to customers via Seed CX’s settlement subsidiary, Zero Hash, which would synchronize its internal accounting layer with the blockchain. This would give users an additional external view of all deposits, movements and withdrawals associated with their wallet.
“Zero Hash has learned a great deal from the shortcomings and failures of other exchanges,” said Julie Myers-Wood, a Zero Hash public director. “Giving participants full visibility into their own unique wallets is a big part of that, but it’s not enough.”
As part of the process, Zero Hash will create new wallet addresses for each participant every day and then again each time movements between wallets take place. This allows participants to easily track movements on the blockchain while keeping their activity anonymous to other participants.
In addition, Seed CX said that spreading digital asset holdings across multiple wallets would reduce “the surface area for bad actors looking to attack.”
Based in Chicago, Seed CX is backed by Bain Capital, OKCoin USA, Dekrypt Capital and others. Through its subsidiaries, it offers a market for institutional trading and settlement of spot digital assets, and plans to offer a separate market for CFTC-regulated derivatives.
