Crypto Asset Manager Algoz Taps Standard Chartered-Backed Zodia Custody for Safer Investing

As a seasoned researcher who has seen the crypto market’s rollercoaster ride over the years, I can’t help but admire the proactive steps companies like Algoz are taking to ensure investor protection. The fall of FTX was a stark reminder of the potential pitfalls in this space, and it’s heartening to see Algoz’s response with their Quant Pro vehicle.

Cryptocurrency asset manager Algoz has formed a partnership with Zodia Custody, a cryptocurrency custody service supported by financial giants like Standard Chartered, SBI Holdings, Northern Trust, and National Australia Bank, to launch its digital asset investment product.

Based in Raanana, Israel, Algoz aspires to strengthen the safety of its clients’ assets against bankruptcy of counterparties and advocates for top-tier security, efficiency, and regulatory compliance, as stated in an email communication sent on Thursday.

In November 2022, the sudden failure of cryptocurrency exchange FTX served as a stark reminder of the risks associated with investment platforms improperly commingling funds. This practice, known as co-mingling, involves the use of customer deposits for unrelated trades or investments, which can lead to financial losses for investors.

In response to these occurrences, Algoz introduced their Quant Pro investment tool, enabling asset managers to trade the collateral value of investor holdings without physically owning the assets. Now, Algoz intends to leverage Zodia’s Interchange service to provide off-exchange settlement and minimize risks related to liquidity and insolvency issues.

The announcement was made following Zodia being selected by Maple Finance for a strategic collaboration, aiming to safeguard their digital assets in a manner comparable to their existing partnerships.