Crypto Manager Algoz Partners with Zodia Custody for Secure Investments
Date: 2024-08-09 Author: Oliver Abernathy Categories: BUSINESS
The collapse of cryptocurrency exchange FTX in November 2022 exposed serious issues related to illegal commingling of funds on investment platforms, where client deposits were used for other trading or investments. In response to this event, Algoz introduced its Quant Pro investment product, under which managers trade the value of investors’ collateral without taking control of the assets.
Ra’anana, Israel-based Algoz has announced a partnership with crypto custodian Zodia Custody, backed by Standard Chartered, SBI Holdings, Northern Trust, and National Australia Bank. Together, Zodia’s Interchange service will allow Algoz to conduct OTC settlement and mitigate liquidity and insolvency risks.
According to the press release, the partnership aims to maximise protection of client funds from counterparty defaults and promote best practices in security, efficiency and compliance.
Zodia was recently selected by crypto lender Maple Finance for a similar partnership to secure the company’s digital assets.
In light of the FTX collapse, Algoz developed Quant Pro to prevent the misuse of client funds. Now, by partnering with Zodia and using the Interchange service, Algoz will be able to offer its clients an increased level of protection and reliability, ensuring the safety of their assets.
Julian Sawyer, CEO of Zodia Custody, noted that the collaboration with Algoz confirms the high standards of security and reliability that they strive to bring to the digital asset industry.
This partnership aims to address key risks faced by cryptocurrency investors and promote transparency and trust in the sector.
