Capital Union, a Bahamas-based financial institution that reportedly holds a portion of reserves by the Tether (USDT) stablecoin issuer, has been actively concerned within the cryptocurrency trade.
The banking establishment has rolled out crypto buying and selling and custody providers to its skilled shoppers as a part of the financial institution’s buying and selling desk, a spokesperson for Capital Union advised Cointelegraph on Tuesday.
“We work with a few selected trading venues and liquidity providers and a handful of custodians and technology providers, which allows us to support a large variety of digital assets as part of our trading and custody services,” the agency’s consultant stated.
Capital Union’s crypto-related providers nonetheless signify a “fairly small portion” of its enterprise, which is especially targeted on offering conventional wealth administration and funding providers, the consultant famous.
The spokesperson didn’t elaborate both on what cryptocurrencies are supported on Capital Union’s platform or after they had been launched, stating:
“We do not have a directional view on crypto markets or on any specific coins but as a forward looking financial institution have chosen to enable our professional clients to trade in this new asset class should they desire to do so.”
According to the consultant, Capital Union has additionally been working actively on creating “transactional blockchain related capabilities” because the financial institution expects this to be an space of “significant disruption for the financial industry.”
Capital Union’s newest crypto-related remarks comply with a Monday report claiming that Tether held a few of its reserves on the Capital Union financial institution. The firm’s consultant declined to substantiate or deny the financial institution’s involvement in Tether’s operations to Cointelegraph, citing confidentiality causes. The solely publicly obtainable data from the financial institution is included in Capital Union’s annual reviews, the individual added.
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Founded in 2013, Capital Union managed $1 billion of property by the tip of 2020. The financial institution partnered with Chainalysis in April 2022 to make sure the protected and compliant rollout of its crypto options like buying and selling and custody. According to the financial institution’s spokesperson, the Bahamas was one of many first nations to undertake a regulatory framework generally known as the DARE Act in 2020.
“As a locally regulated bank, this allows us to offer crypto-related services to our clients, which are financial institutions, financial intermediaries and professional investors,” Capital Union’s consultant stated.