HomeCryptoKuCoin launches a crypto custody service

KuCoin launches a crypto custody service

Arwen has announced a partnership with the KuCoin crypto exchange for a service of self-custody of customers’ cryptocurrencies.

KuCoin is a classic centralised cryptocurrency exchange, which also takes care of the custody of its users’ funds. Users must deposit their funds on the exchange wallets in order to start trading.

Arwen, on the other hand, allows the self-custody of the cryptocurrencies used for trading on the exchange, as is the case, for example, with decentralised exchanges, even though the exchange will still remain centralised.

As a result, this technology eliminates the risk of crypto storage by third parties, since the responsibility falls in the hands of the users.

Thanks to Arwen, KuCoin traders will no longer have to send their crypto to the exchange wallet in order to trade them, but they will be able to trade them safely while maintaining direct custody. KuCoin transactions are executed via a second-level blockchain protocol that allows traders to benefit from all the liquidity and speed of a centralised order book.

Security is guaranteed by the use of the native blockchain of the currency exchanged, so for example for BTC trading, this is provided by the Bitcoin blockchain, without the need to rely on a new blockchain.

The first exchange to use this technology is precisely KuCoin, for now in beta version and only for the trading of limited amounts. To be able to use it, users must have a KYC-verified KuCoin account. The service is not available for residents of the United States.

The President of KuCoin, Eric Don, said:

“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”.

However, Arwen is also in talks with other funds, hardware wallet manufacturers, institutional custody services and other exchanges in order to extend their functionality.

Marco Cavicchioli
Marco Cavicchioli
Born in 1975, Marco has been the first to talk about Bitcoin on YouTube in Italy. He founded ilBitcoin.news and the Facebook group" Bitcoin Italia (open and without scam) ".