Hex Trust, a Hong Kong-based digital asset custodian for the banking sector, has partnered with Chainalysis, a blockchain analysis and cryptocurrency crime expert, to enhance the compliance features of its custody platform.

Hex Trust will adopt Chainalysis KYT (Know Your Transaction), a compliance solution, for real-time transaction monitoring, and Chainalysis Reactor, an investigative tool, for enhanced due diligence.

Cryptocurrency has become a more mainstream asset class, with an inflow of institutional dollars driving Bitcoin and other cryptocurrencies to record prices. Forward-thinking banks are increasingly giving customers direct access to cryptocurrency by partnering with custodian services to hold cryptocurrency on their behalf. This allows them to test the new offering with fewer resources invested, while also drawing on outside cryptocurrency expertise to increase their chances of success. 

Alessio Quaglini, co-founder and chief executive officer of Hex Trust, says: “Cryptocurrency and blockchain technology is at the forefront of innovation in the financial services industry, and traditional financial institutions that embrace the change are likely to come out on top. Our partnership with Chainalysis is another testament to Hex Trust’s commitment to providing our clients with the most secure custody solution with a comprehensive compliance-first approach available in the market today.”

Hex Trust boasts the industry’s most comprehensive custody solution with enterprise-grade security and features, such as digital asset servicing. Its services include trade execution, access liquidity and price discovery for digital assets such as cryptocurrencies, security tokens and non-fungible tokens.

Chainalysis recently raised US$100 million in a Series D funding round, taking its valuation to more than US$2 billion. The company provides data, software, and expertise on sophisticated cryptocurrency crime and money laundering tactics, techniques, and procedures.