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.

Read More: Crypto Hardware Wallet Maker Ledger Raises Most of $109M Round: Bloomberg