OKCoin Invests In Crypto Custody Firm Prime Trust

San-Franciso-based cryptocurrency exchange, OKCoin recently invested an undisclosed amount in Prime Trust a crypto custody service provider.

Scott Purcell, Prime Trust CEO and chief trust officer sent out a note to customers on Wednesday stating that the firm recently closed a “nice” funding round which was led by OKCoin.

Other notable participants included in the round were  Gateway Blockchain Partners, Novablock Ventures and Xsquared Ventures but Purcell added:

“We aren’t disclosing details though.”

Notably, Prime Trust already serves as OKCoins fiat gateway. OKCoin announced last week that it has added a new payment channel which allows customers to deposit funds via Prime Trust with no fees. However, withdrawals still incur the fee of $35 per transaction.

Furthermore, Prime Trust also announced that it had plans in partnership with OK Group to launch a compliant stablecoin with the “OKUSD” ticket which will operate on OKCoin’s blockchain. OKEx stated last month that the final stage of development of the network is currently underway and added that it plans to launch by June. In addition to this, a decentralized exchange (DEX) is also forthcoming.

Prime Trust, which is a Nevada-based financial company, silently entered the crypto space last July, offering cold (offline) storage for Bitcoin. Just a month later, the company began offering custody services for Ethereum and any token issued on the ethereum blockchain under the ERC-20 standard.

Earlier this year, the firm also announced that it would cease charging clients for custody of digital assets, in line with its custody services for stocks and bonds.

At the time Purcell stated that Prime Trust has other avenues of revenue to make up for the loss of the custody fees, adding:

“We make money just as Robinhood, Northern Trust and other traditional custodians do. The costs of custody are offset by other services.”