Crypto Asset Manager Algoz Taps Standard Chartered-Backed Zodia Custody for Safer Investing

The crash of cryptocurrency exchange FTX in November 2022 highlighted the dangers of investment platforms that illegally commingle funds, where customers’ deposits are misused for other trades or investments.

In response to such incidents, Algoz launched the Quant Pro investment vehicle, through which managers can buy and sell the collateral value of investor assets without taking control of the assets.

Crypto asset manager Algoz has partnered with crypto custody service Zodia Custody, backed by Standard Chartered, SBI Holdings, Northern Trust and National Australia Bank, for a digital asset investment vehicle.

Algoz, based in Raanana, Israel, aims to protect its clients’ funds from counterparty bankruptcy and promote best practices in security, efficiency and compliance, according to an announcement emailed Thursday.

The collapse of cryptocurrency exchange FTX in November 2022 highlighted the dangers of investment platforms illegally commingling funds, whereby customers’ deposits were misused for other trades or investments.

In response to such events, Algoz launched its Quant Pro investment vehicle, where asset managers buy and sell the collateral value of investor assets without taking control of the assets. Algoz will now offer off-site settlement using Zodia’s Interchange service, reducing risks around liquidity and bankruptcy.

The announcement comes after Zodia was recently selected by crypto lender Maple Finance to form a similar partnership to secure the firm’s digital assets.

Read More: Standard Chartered-Backed Zodia Custody Partners with Crypto Lending Firm Maple Finance