Crypto dealer SFOX inks partnership to offer FDIC protection to select clients

A partnership between SFOX and M.Y. Safra Bank is providing crypto trading firms with a level of security found in traditional finance. The cryptoasset platform’s collaboration with the New York bank is creating FDIC-insured deposit accounts for crypto traders, enabling direct access to their funds for global trading.

SFOX has been working to reduce risk in crypto transactions through its prime dealer platform since 2014. SFOX CEO Akbar Thobhani said the introduction of FDIC insured accounts is moving that mission forward.

“SFOX’s partnership with M.Y. Safra Bank represents another step forward in our mission to provide our clients with the best place to trade cryptoassets,” he said in a press release. “M.Y. Safra’s Bank proven track record of providing custom banking solutions to institutions and HNWIs made them the ideal choice for taking SFOX trading one step closer to the goal of a truly frictionless and reliable trade experience across all cryptoassets.”

THE SCOOP

Keep up with the latest news, trends, charts and views on crypto and DeFi with a new biweekly newsletter from The Block's Frank Chaparro

By signing-up you agree to our Terms of Service and Privacy Policy
By signing-up you agree to our Terms of Service and Privacy Policy

This is a first, according to SFOX. Previously, banks have not allowed accounts linked to crypto trading. With the partnership, approved SFOX accounts can be insured up to $250,000.

New “segregated accounts” will allow users to keep their funds in bank accounts under their name, separately from their exchange account.

SFOX claimed the new facility with M.Y. Safra will reduce the time of trade transactions and increase efficiency. M.Y. Safra Bank CEO Jacob M. Safra said in a press release he believes the move puts the bank at the forefront of financial innovation while keeping an eye on security.

“M.Y. Safra Bank’s partnership with SFOX underscores our commitment to spearheading the best solutions within the newest domains of finance,” said Safra.

About Author

Aislinn Keely is a reporter on The Block's policy team holding down the legal beat. She covers court decisions, bankruptcies, regulatory actions and other key moments in the legal sphere, putting them in context for the wider crypto industry. Before The Block, she lent her voice to the NPR affiliate WFUV and helmed Fordham University's student newspaper. Send tips or thoughts on all things policy and legal to [email protected] or follow her on Twitter for updates @AislinnKeely.