KuCoin Users Can Now Custody Their Own Crypto Assets
As it has been revealed well-known crypto exchange KuCoin has added a new feature to its platform. Now its users will have an opportunity to custody their crypto assets while conducting trading activities on the platform.
Crypto Custody on KuCoin
To launch this feature, the exchanged has used a technology offered by Arwen, a Boston-based startup. Arwen represents itself a newly-backed solution for traders and funds that do not feel like holding their personal cryptocurrency assets on centralized exchanges.
Arwen offers them a possibility to self-custody their coins while they are conducting trading activities on a centralized exchange.
Thanks to a layer-two blockchain protocol that is used to executed Arwen trades, traders are able to enjoy the benefits of the full liquidity and the increased speed of the centralized exchange’s orderbook.
Speaking about their new partnership with Arwen, KuCoin President Eric Don stated:
“Decentralized solutions will gain increasing popularity. For now, most DEXs can hardly provide a service that is as user-friendly and fast as that of their centralized counterpart. We are excited to partner with Arwen to make this bold move, offering the best of centralized and decentralized trading.”
According to Arwen, their solution is intended to provide secure trading between parties as trading is conducted on the traded cryptocurrency’s native blockchain. It means that Bitcoin trading security is ensured by using Bitcoin blockchain and security for trading Bitcoin Cash is ensured by Bitcoin Cash blockchain,
“This service will enable investors to trade in a centralized platform without worrying about their fund safety,” added Eric Don.
At the moment the new feature is launched on KuCoin in beta mode with some limitations. Sizes of escrow are now limited to about $100. Trade sizes are said to be limited to about $25. According to the company, it’s a standard security measure.
To become users of the service and to enjoy all its benefits, traders will be required to pass through a know-your-customer (KYC) procedure for their KuCoin accounts. It’s also known that there will be some geographical restrictions. Traders located in the U.S. as well as in countries sanctioned by the U.S will not have an opportunity to use the service now.
“Arwen and [KuCoin] paid special attention to KYC/AML in this collaboration and we care more about compliance than most existing [decentralized exchanges]”, explained Don.
It is also known that KuCoin has plans to build its own decentralized exchange. As its CEO Michael Gan revealed the cooperation with Arwen is just their first step to creating this platform and ensuring the security of users’ digital assets.
It’s also worth mentioning that the exchange managed to raise $20 million in Series A funding last November being supported by IDG Capital, Matrix Partners and Neo Global Capital .
KuCoin IEO Platform
Let us also remind you that KuCoin has recently joined the row of crypto exchanges that opt for the Initial Exchange Offering (IEO) fundraising program
Initially, the concept of IEO fundraising was by Binance and now more and more crypto exchanges get interested in such an option.