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Hard-Wallet Maker Ledger, Crypto Custodian Etana Target Institutions With Regulated Custody

Hard-Wallet Maker Ledger, Crypto Custodian Etana Target Institutions With Regulated Custody

Hard-Wallet Maker Ledger, Crypto Custodian Etana Target Institutions With Regulated Custody

The companies are looking to make it easier for institutions to hold digital assets and bolster investor confidence in the market.

The companies are looking to make it easier for institutions to hold digital assets and bolster investor confidence in the market.

The companies are looking to make it easier for institutions to hold digital assets and bolster investor confidence in the market.

AccessTimeIconApr 19, 2023, 12:02 PM
Updated May 9, 2023, 4:12 AM
Ledger is working with Etana to target institutional investors eyeing crypto investments. (Hendrik Morkel/Unsplash)

Ledger, an offline private-key storage company, is working with crypto custodian Etana Custody to offer secure, regulated cryptocurrency custody for institutional clients in the U.S., according to a Wednesday press release.

The companies are looking to make it easier for institutions to hold digital assets and bolster investor confidence in the market. The arrangement allows customers to access the more than 1,800 tokens supported by Ledger, broadening their crypto investment options without having to maintain their own private keys, while segregating clients’ funds and reducing counterparty risks.

Institutional investors have become increasingly mindful of complying with crypto regulations amid a regulatory crackdown on the digital-assets industry in the U.S. In the first few months of 2023, the Securities and Exchange Commission has levied penalties, including fines, against more than a dozen crypto trading and lending firms.

As part of the deal, Etana is able to act as a settlement party to the counterparties in a given transaction, enabling them to trade digital assets without putting up their money to one another directly, eliminating the risk of deals falling through.

"It essentially prevents the client from doing the Hokey Pokey, or putting his money in and taking it out before a trade actually settles, leaving the exchange with the settlement risk,” Etana CEO Brandon Russell told CoinDesk.

Edited by Sheldon Reback.

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CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Elizabeth Napolitano was a news reporter at CoinDesk.