The cryptocurrency exchange KuCoin is currently allowing users to take care (custody) their own cryptocurrencies when trading in this platform. KuCoin is one of the largest and most popular cryptocurrency exchanges in the market. This is very important for the cryptocurrency market that has been affected by hacks and other attacks on exchanges.
KuCoin Allows Uses to Custody Their Digital Assets
According to the company, in order to be able to achieve this, users will be relying on the native blockchain of the asset they are trading. That means that if they trade Bitcoin (BTC), they will be using the Bitcoin blockchain as security. The same would happen with other digital currencies.
At the moment, this feature was launched in beta mode and the service is limited. It is worth mentioning that the escrow sizes are limited also to $100 and trade sizes are also limited to $25. Although this provides greater security, users will have to be compliant with the Know-Your-Customer (KYC) account to get started with the service. They also should not be located in the United States or other jurisdictions that could have been affected by US sanctions.
There are different cryptocurrency exchanges that are working in order to create their own decentralized exchanges. KuCoin is one of these platforms. In order to implement these services and functionalities, the exchange partnered with the startup Arwen, that provides crypto solutions to companies.
During a conversation with CoinDesk, the CEO of the platform Michael Gan informed that the cooperation with Arwen is the first step to allow users to control their own digital assets in a decentralized way.
Arwen informed that they are currently discussing possible partnerships with other cryptocurrency exchanges. Hardware wallets and institutional custodians are also talking with Arwen to start implementing their services.
According to CoinMarketCap, KuCoin is the 77th largest digital currency in the market in terms of the trading volume. In the last 24 hours, the firm handled almost $17 million.