Share this article
UK Crypto Exchange Archax Launches FCA-Regulated Custody Service
The new offering uses tech from Swiss MPC shop Metaco and the IBM Cloud.
By Ian Allison
Updated May 9, 2023, 4:06 a.m. Published Jan 31, 2023, 12:00 p.m.
U.K.-regulated cryptocurrency exchange Archax has launched a digital asset custody service with the blessing of regulators, as institutional crypto players button up their operations and try to rebuild trust in the sector.
The London-based Archax and its new custody business are among the few offerings to have cleared the Financial Conduct Authority’s (FCA) high bar for firms dealing in digital assets. All assets held in custody will be entirely segregated and “solvency-remote” from the exchange, said Archax, meaning that if the trading business did go bust, custodied assets would not be included in any bankruptcy proceedings.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
“Events like FTX have highlighted the need for a more traditional approach to things,” said Archax Chief Marketing Officer Simon Barnby in an interview. “As an FCA-regulated custodian, we are permitted to hold cryptocurrencies, tokenized assets like funds or real estate, as well as traditional instruments and cash for our clients.”
Advertisement
The Archax custody service will further appeal to banks and big institutional customers by virtue of being partnered with Swiss multi-party computation (MPC) tech provider Metaco. The service will be rolled out using IBM Cloud, a battle-tested key security environment familiar to many of the world’s big banks.
“We wanted to find partners with the right expertise, particularly around the security of cryptographic keys, where we could use their technology but not outsource stuff, because the FCA requires us to be in control,” said Barnby.
More For You
Exchange Review - March 2025
CoinDesk Data's monthly Exchange Review captures the key developments within the cryptocurrency exchange market. The report includes analyses that relate to exchange volumes, crypto derivatives trading, market segmentation by fees, fiat trading, and more.
What to know:
Trading activity softened in March as market uncertainty grew amid escalating tariff tensions between the U.S. and global trading partners. Centralized exchanges recorded their lowest combined trading volume since October, declining 6.24% to $6.79tn. This marked the third consecutive monthly decline across both market segments, with spot trading volume falling 14.1% to $1.98tn and derivatives trading slipping 2.56% to $4.81tn.
- Trading Volumes Decline for Third Consecutive Month: Combined spot and derivatives trading volume on centralized exchanges fell by 6.24% to $6.79tn in March 2025, reaching the lowest level since October. Both spot and derivatives markets recorded their third consecutive monthly decline, falling 14.1% and 2.56% to $1.98tn and $4.81tn respectively.
- Institutional Crypto Trading Volume on CME Falls 23.5%: In March, total derivatives trading volume on the CME exchange fell by 23.5% to $175bn, the lowest monthly volume since October 2024. CME's market share among derivatives exchanges dropped from 4.63% to 3.64%, suggesting declining institutional interest amid current macroeconomic conditions.
- Bybit Spot Market Share Slides in March: Spot trading volume on Bybit fell by 52.1% to $81.1bn in March, coinciding with decreased trading activity following the hack of the exchange's cold wallets in February. Bybit's spot market share dropped from 7.35% to 4.10%, its lowest since July 2023.
More For You
Top Stories
