OKCoin Exchange Invests in Crypto Custody Firm Prime Trust

Cryptocurrency exchange OKCoin has invested an undisclosed amount in crypto custody provider Prime Trust.

Apr 18, 2019 at 8:15 a.m. UTC
Updated Sep 13, 2021 at 9:05 a.m. UTC

Cryptocurrency exchange OKCoin has invested an undisclosed amount in crypto custody provider Prime Trust.

In a note sent to customers on Wednesday, Prime Trust CEO and chief trust officer Scott Purcell said that the firm has closed a “nice” funding round that was led by the California-based exchange.

Other participants in the round included Gateway Blockchain Partners, Novablock Ventures and Xsquared Ventures, Purcell said, adding: “We aren't disclosing details though.”

Notably, Prime Trust serves as OKCoin’s fiat gateway. The exchange announced last week that it has added a new payment channel allowing customers to deposit funds through Prime Trust with no fees. Withdrawals, however, are charged at $35 fee per transaction.

Last month, Prime Trust also said that, in partnership with OK Group, it plans to launch a compliant stablecoin, “OKUSD”, which will operate on the OKChain blockchain. Development of the network is at the “final” stage, OKEx said last month, adding that it plans a launch by June. A decentralized exchange (DEX) on OKChain is also on the horizon.

Prime Trust, a Nevada-based financial company, quietly entered the crypto custody business last July, first offering cold (offline) storage for bitcoin. A month later, it also started offering custody services for ether and any token issued on the ethereum blockchain under the ERC-20 standard.

Earlier this year, the firm announced that it wouldn’t charge clients for custody of digital assets any longer, in line with its custody services for stocks and bonds.

Purcell told CoinDesk at the time that Prime Trust has other sources of revenue to make up for the removal of custody fees, explaining:

“We make money just as Robinhood, Northern Trust and other traditional custodians do. The costs of custody are offset by other services.”

OKCoin image via CoinDesk archives 

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
San Francisco NFL Player Alex Barrett Taking His Salary in Bitcoin

The most valuable crypto stories for Thursday, May 20, 2022.

The most valuable crypto stories for Thursday, May 20, 2022.

CoinDesk - Unknown
2
CoinDesk - Unknown
Justin Sun Still Thinks Algorithmic Stablecoins Are a Good Idea

The crypto mogul also said LUNA and UST might make good "meme coins," he said on CoinDesk TV’s “First Mover.”

The crypto mogul also said LUNA and UST might make good "meme coins," he said on CoinDesk TV’s “First Mover.”

CoinDesk - Unknown
3
CoinDesk - Unknown
Former BitMEX CEO Arthur Hayes Sentenced to 2 Years Probation

Hayes pleaded guilty to one count of violating the Bank Secrecy Act (BSA) in February, and faced a sentence of up to 12 months in prison.

Hayes pleaded guilty to one count of violating the Bank Secrecy Act (BSA) in February, and faced a sentence of up to 12 months in prison.

CoinDesk - Unknown
4
CoinDesk - Unknown
Market Wrap: Cryptos Decline Amid Choppy Trading, DeFi Tokens Underperform

Aversion to risk remains as volatility returns to stocks and cryptos.

Aversion to risk remains as volatility returns to stocks and cryptos.

CoinDesk - Unknown