Crypto.com has secured a new partnership with Axelar Foundation to manage the digital asset custody of AXL tokens, which highlights both companies’ commitment to providing top-tier security and compliance in cryptocurrency storage solutions.
This significant collaboration aims to bolster institutional infrastructure within the crypto space, enhancing trust and paving the way for increased investment from institutional players seeking robust security measures.
Crypto.com Wins Axelar’s Institutional Custody Mandate
Crypto.com, a leading cryptocurrency exchange, has been selected by the Axelar Foundation for institutional custody of its digital assets. This partnership, announced by both organizations, underscores the need for compliant and secure storage of digital tokens like AXL.
The collaboration between Crypto.com and Axelar Foundation marks a significant move towards enhanced institutional custody solutions. The custodianship aims to ensure that AXL tokens are stored with the highest standards of compliance and operational integrity.
Potential Institutional Security Boost from Custody Deal
The broader cryptocurrency community has shown interest in how this custodianship might influence security standards within the industry. Enhanced security could attract more institutional investors, benefiting from robust infrastructure and compliance given current market demands.
While no specific funding details were disclosed, the focus is on transferring assets securely. Eric Anziani, Crypto.com’s President, emphasized the importance of this partnership, stating it could foster increased institutional engagement by providing secure asset management in digital finance.
“Institutional custody is a critical component of any digital asset strategy. We’re honored to support Axelar with secure infrastructure that meets the highest standards of compliance and operational integrity.” – Eric Anziani, President and COO, Crypto.com
Historical Precedents in Institutional Custody
Past instances, such as Solana Foundation’s move to institutional custody, suggest similar motives behind the Axelar tie-up. Historically, such actions have aimed at improving compliance and accessibility for institutional participants, aligning with the ongoing trend in the DeFi market.
Experts from Kanalcoin note that while these custodial agreements may not immediately affect token prices, they enhance long-term accessibility. By aligning with institutional needs, this partnership potentially facilitates smoother onboarding and liquidity improvements over time.
