Separating Crypto Custody from Exchange Execution for Institutional Funds
Summary
The document describes a custody and trading arrangement involving OKX, Standard Chartered Bank, and Temple Capital. Most of the manager’s assets are held in segregated, off-exchange accounts at the bank, while corresponding balances are mirrored on OKX to support trading. The design separates custody from execution, aiming to retain access to exchange liquidity while placing most assets with an independent custodian. It presents this division of roles as analogous to traditional financial arrangements among custodians, exchanges, and brokers.
The structure illustrates an operational approach institutions may consider when seeking both asset segregation and trading access. The document also identifies separation of custody and trading, regulatory alignment, and technology-enabled settlement as general infrastructure needs. However, it is a promotional account from an exchange partner and offers no independent assessment of the arrangement, custody terms, reconciliation process, counterparty exposure, legal protections, or settlement mechanics. It reports Temple Capital’s assets under management as approximately $120 million, but gives no evidence that the framework reduces losses or improves execution. The description is useful as a model to examine, not as proof of safety.
Key ideas
- The arrangement keeps most fund assets in segregated, off-exchange bank custody.
- Mirrored balances on an exchange are used to maintain access to trading liquidity.
- Separating custody and execution is presented as a way to support operational risk control.
- The document provides no independent evidence about the structure’s protections or performance.
- Counterparty, reconciliation, legal, and settlement details would be needed to assess the model.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.