The FCA regulated digital securities exchange, brokerage and custodian, is addressing the explosive demand for digital assets from mainstream financial institutions.
Andrew Flatt, CTO of Archax, said: “As the first firm to be listed on the FCA’s cryptoasset register, delivering and conducting KYC/AML checks on our customers is critical. Archax needed a partner that shares its mantra of speed, security and user experience. Our new relationship with NorthRow has made this possible. By accelerating our customer due-diligence processes, Archax users will benefit from a great user experience whilst we ensure we meet the highest levels of compliance.”
Archax aims to bring liquidity to assets that are currently hard to trade and revolutionize the post-trade space by bridging the gap between the blockchain-centric crypto community and the traditional investment space.
The digital asset exchange provides tokenization of assets to create regulated digital securities or security tokens and bring liquidity to markets.
To further boost institutional investor confidence, Archax has partnered with a leading supplier of digital compliance solutions, NorthRow, in order to deliver robust client due diligence processes, monitor their clients risk-status on an ongoing basis, offer an effortless remote customer onboarding experience, and ensure the highest levels of anti-money laundering regulatory requirements are met.
Adam Holden, CEO, NorthRow, commented: “We’re excited to bring our experience and technology to the partnership with Archax. Our delivery of digital compliance solutions fits well into this exciting and emerging world of digital asset exchanges. The partnership will complement our strategic focus on delivering digital transformation to the regulated sectors and our joint efforts will enable us to push the future of cryptocurrencies exchange and brokering.”
NorthRow was chosen among its competitors for its insight on customer behaviour when it comes to compliance. The partnership will benefit Archax from operational efficiencies as well.
According to a Fidelity Digital Assets survey, 80% of U.S and European traditional investors consider cryptocurrency to be an appealing portfolio prospect.
Archax has recently appointed Alex Royle to its executive committee as the new Chief Compliance Officer. Royle served as a part of the UK’s regulatory authority for a total of two and a half years during which he served as part of Equity Market & Derivatives Market Supervision teams and a member of the MTF/OTF Trading Venue Supervision. He led the supervisory effort of a number of the most innovative MTFs at the FCA.
In late 2019, Archax partnered with R3 in order to use the enterprise blockchain software firm’s Corda Enterprise platform to handle post-trade activities on a distributed ledger. Archax will use a private version of Corda Enterprise within its own ecosystem to handle post-trade activities.
Regarding data protection, the exchange partnered with Unbound Tech which operates its Distributed Trust Platform to protect data, such as cryptographic keys, credentials or private information, by ensuring it never exists in complete form as it negates the need for hardware wallets. Its software uses Multi-Party Computation mathematics to split cryptographic keys into parts that are never again united, completely eliminating the single point of compromise for the most sensitive of assets.