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Algoz Partners with Zodia Custody to Strengthen Digital Asset Security
Algoz has teamed up with Zodia Custody to enhance the security of digital assets. This partnership aims to provide robust solutions for asset protection in the rapidly evolving cryptocurrency landscape.
Algoz Partners with Zodia Custody to Enhance Digital Asset Security
Algoz, a prominent crypto asset management firm based in Raanana, Israel, has announced a strategic partnership with Zodia Custody, a reputable cryptocurrency custodial service backed by industry giants such as Standard Chartered, SBI Holdings, Northern Trust, and National Australia Bank. This collaboration aims to bolster the security and integrity of Algoz’s digital asset investment vehicle.
In light of the increasing scrutiny surrounding the safety of customer funds in the cryptocurrency sector, Algoz is committed to enhancing the protection of its clients’ investments. The firm seeks to implement best practices in security, efficiency, and compliance, as highlighted in their recent announcement.
The catastrophic collapse of the FTX exchange in November 2022 served as a stark reminder of the risks associated with investment platforms that engage in the illegal co-mingling of customer funds. Such practices often lead to the misuse of deposits for unauthorized trades or investments, jeopardizing the financial security of investors.
In response to these alarming trends, Algoz has introduced its innovative Quant Pro investment vehicle. This unique approach allows asset managers to trade based on the collateral value of investor holdings without ever taking control of the assets themselves. This model aims to maintain a higher level of transparency and security for investors.
To further enhance its risk management strategies, Algoz will leverage Zodia’s Interchange service. This service provides off-venue settlement solutions, effectively mitigating risks related to liquidity and insolvency. By integrating these advanced custodial services, Algoz is taking proactive steps to safeguard its clients’ digital assets.
This announcement follows Zodia Custody’s recent collaboration with crypto lender Maple Finance, where they formed a similar partnership to enhance the security of the firm’s digital assets. Such alliances illustrate the growing emphasis on secure custodial solutions in the rapidly evolving cryptocurrency landscape.