Crypto Broker and Custodian ‘Balance Custody’ Offers Ripple (XRP) Trading and Custody
Ripple looks to start Q4 on a high as it looks to leave behind a hugely negative 2018 in terms of market performance.
The third largest cryptocurrency by market capitalization Ripple (XRP) has received a big boost in its efforts to attract institutional investors. A new crypto fund targeting institutional investors will now include Ripple’s XRP token.
Balance Custody recently launched a new cryptocurrency custody service that offers support for eight crypto assets that include Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Ethereum Classic (ETC), Stellar (XLM), Litecoin, Dash, and the aforementioned Ripple (XRP).
The company based the selection on a number of factors, including technological merit, an asset’s community strength, and its track record.
The Canadian company Balance has said that it will offer a transparent, auditable and military grade secure solution.
To safeguard client assets, Balance Custody will store all assets in Deep Cold Storage. It will also use secure vaults distributed across North America.
The new company will provide liquidity within 48h of a request from a client, and it will have an annual fee charged monthly on a prorated basis. The broker will be very competitive in Canada as it offers lower custody fees compared to similar competitors within the industry like Coinbase Custody.
For example, Coinbase Custody charges an annual fee of 1.2 percent, while Gemini’s is 0.984 percent. In contrast, Balance will charge a comparatively low annual fee of 0.5 percent.
The company ran a year-long pilot involving a selected group of investors, the result of which has been the creation of a crypto fund solution that gives guarantees to investors.
According to Balance CEO George Bordianu, pilot tests revealed that most blockchain APIs and interfaces displayed limited functionality. He adds that:
“Implementing a robust solution on a ‘per client’ basis would quickly turn out to not scale. We knew we could do better, and thanks to R&D developments in the space, we did.”
At the moment, the Canada-based company continues to engage regulators as it works towards ensuring it complies with all the laws governing cryptocurrency investments.
Despite an impressive marketing campaign and a host of high profile partnerships, XRP has largely underperformed, thanks to an overriding bearish year-to-date market.
However, the biggest problem has been the negativity surrounding the fact that Ripple, the company that created XRP, owns nearly 60% of the token’s total supply.
This sentiment is the reason the crypto has faced numerous snubs, most notably from Coinbase and recently from Morgan Creek Capital. The latter decided against offering support for XRP when it launched its institutional grade crypto fund.
At the time, a partner at Morgan Creek Antony Pompliano explained why the company did not include Ripple and other top ten coins in the fund.
“If there’s a central party that owns 30% or more of supply, then we withhold those from the index.”
The exclusion apparently hinged on the fact that these assets fall into a category of coins called pre-mined tokens. The Morgan Creek Bitwise Digital Asset Index, however, included EOS and OmiseGo which are non-mineable.
Therefore, the inclusion of XRP in the Balance Custody fund is a big step forward for the coin. The San Francisco-based company has said that it is on the verge of a breakthrough in its efforts to sell XRP directly to institutional investors.
There is an increasing interest in the XRP token from companies and institutions. According to Ripple CEO Brad Garlinghouse, their Markets Report for Q3 will show how the interest in the coin has skyrocketed in the last three months.
He revealed this during a recent AMA session with the company’s Chief Market Strategist Johnson Cory. And it appears the inclusion of XRP in the new crypto fund takes it one step closer to a better Q4.