Anchorage Digital has launched a settlement platform that allows institutions to trade on crypto venues while keeping assets in custody at its federally regulated bank, a move aimed at managing counterparty and operational risks.
The Coordinated Multiparty Settlement (CMS) platform connects trading venues, prime brokers, and institutional clients through a shared settlement layer. Anchorage Digital Bank holds the assets throughout the trade lifecycle.
CMS verifies funding obligations and coordinates settlement across participants, reducing the number of asset transfers required to complete trades. The system is designed to minimize the need for pre-funded exchange accounts, a common source of risk in crypto markets.
Anchorage noted that much of crypto trading still occurs on offshore platforms where a single entity functions as exchange, custodian, and settlement agent, often commingling client assets.
In the CMS model, prime brokers manage client balances and credit, trading venues act as matching engines, and Anchorage provides custody and settlement.
The rollout begins with Spotex, a foreign exchange trading platform processing billions in daily volume, with additional venue integrations in development.