Both XBTO and Stablehouse are under the oversight of the Bermuda Monetary Authority (BMA).
XBTO has announced the strategic acquisition of Stablehouse, a digital asset custody and trading platform that helps institutions mitigate risk with security, bankruptcy protection and regulatory compliance.
Subject to regulatory approval, the acquisition is expected to accelerate XBTO’s capability to offer institutional investors a comprehensive suite of digital assets services with the addition of a custody offering.
The broad range of digital asset services provided by XBTO will now include everything from custody and institutional trading, to asset management, and designated market making.
Originally incubated by XBTO Group and funded by several industry-leading venture capital funds in 2019, Stablehouse will continue to be led by chief executive Philippe Bekhazi, who will also assume the role of CEO of XBTO Global.
“Institutions need to trust the underlying security of their digital assets”
Philippe Bekhazi, Founder & CEO of XBTO, said: “XBTO’s acquisition of Stablehouse represents a significant moment for both companies, in our joint mission to help drive new technologies and services that are key to institutional adoption of digital assets. In light of the recent turmoil and challenges in the industry, institutions need to trust the underlying security of their digital assets in order to allocate to the asset class with confidence. By acquiring Stablehouse, XBTO is now able to offer a one-stop digital assets platform catered to sophisticated non-US investors and institutions.”
Michael Chauliac, President and General Manager of Stablehouse, commented: “XBTO’s mission through its regulated subsidiaries is to increase institutional access to digital assets, and develop the digital asset economy which is very much aligned with Stablehouse’s vision. The decision to join forces really was a simple one. By working together, we can provide an integrated, comprehensive digital assets platform at a crucial time.”
End-to-end bankruptcy remote state between custody and trading
The Stablehouse custody infrastructure incorporates omnibus custody accounts with integrated trading. It also offers segregated vaults where assets are verifiable on the blockchain at all times, and is built upon a warm storage solution where the keys are protected across distributed environments. The platform ensures an end-to-end bankruptcy remote state between custody and trading.
This suite of solutions enables XBTO to bridge the gap between traditional finance and digital assets and offers large institutions access to its white label service that integrates custody and trading for a seamless user experience.
Both XBTO and Stablehouse are under the oversight of the Bermuda Monetary Authority (BMA), one of the most advanced and robust regulatory frameworks globally. Since its founding in 2015, XBTO has made regulation fundamental to its comprehensive suite of services.
The acquisition is subject to the regulatory approval of the Bermuda Monetary Authority under both the Exchange Control Act and Digital Asset Business Act, and applicable ancillary regulations.