Crypto exchange Seed CX launches new wallet solution for institutional investors

Cryptocurrency exchange platform Seed CX has announced a new digital asset wallet solution which has been developed keeping in mind the needs of institutional clients.

The new wallet features on-chain settlement and aims to be “more stable, more transparent and more secure than any other wallet solution.” Each Seed CX market participant will receive a unique wallet instead of having their assets held in a single omnibus wallet, or across multiple shared wallets.

According to the official release, the wallets will be provided to customers via Seed CX’s settlement subsidiary, Zero Hash, which would synchronize its internal accounting layer with the blockchain. This would give users an additional external view of all deposits, movements and withdrawals associated with their wallet.

“Zero Hash has learned a great deal from the shortcomings and failures of other exchanges,” said Julie Myers-Wood, a Zero Hash public director. “Giving participants full visibility into their own unique wallets is a big part of that, but it’s not enough. Zero Hash has a wide range of operational controls designed to provide investors with a first-of-its-kind experience.”

How the process works is that Zero Hash creates new wallet addresses for each participant every day and then does so again each time movements between wallets take place. This allows participants to easily track movements on the blockchain while keeping their activity anonymous to other participants.

“On-chain settlement helps Seed CX provide trading firms with an experience that is both cost effective and high performance, while also providing the operational and financial security investors demand,” said Edward Woodford, co-founder and CEO of Seed CX.

In addition to the improved visibility, Seed CX said that spreading digital asset holdings across multiple wallets would reduce “the surface area for bad actors looking to attack.”

Based in Chicago, Seed CX is backed by Bain Capital, OKCoin USA, Dekrypt Capital and others. Through its subsidiaries, it offers a market for institutional trading and settlement of spot digital assets, and plans to offer a separate market for CFTC-regulated derivatives.