Crypto Exchanges x DACC: Custody Practice
DACC has signed MOUs with two SFC-licensed crypto exchanges in Hong Kong. DACC provides comprehensive cold-hot HSM custody solutions with institutional-grade security and operational efficiency.
Background
DACC has signed Memorandum of Understanding (MOU)s with two SFC-licensed VATPs — PantherTrade (a subsidiary of Futu Securities) and YAX (a subsidiary of Tiger Securities) to provide hot and cold HSM custody solutions with institutional-grade security and operational efficiency.
DACC serves as the custody solution provider, delivering enterprise-grade wallet infrastructure, multi-signature security, real-time risk monitoring, and comprehensive compliance reporting capabilities.
MOU Partners
Objectives
Key goals for the custody solution
Regulatory Compliance
Meet Hong Kong SFC's custody requirements including segregated wallets, multi-signature controls, and comprehensive audit trails
Asset Security
Implement institutional-grade security measures including cold storage, multi-party computation (MPC), and hardware security modules (HSM)
Operational Efficiency
Enable fast deposit/withdrawal processing while maintaining security standards and supporting high transaction volumes
Scalability
Build infrastructure that can scale with business growth and easily support additional blockchain networks and tokens
DACC Solution
Comprehensive custody infrastructure
Enterprise Wallet Infrastructure
- Multi-signature wallets with customizable approval workflows
- Hot/warm/cold wallet architecture for optimal security-liquidity balance
- Automated wallet segregation for client fund protection
- Support for 50+ blockchain networks and 1000+ tokens
Security & Risk Control
- Real-time transaction monitoring and anomaly detection
- Configurable risk rules and automatic alerts
- Multi-layer approval workflows for large transactions
- Address whitelisting and blacklisting capabilities
Compliance & Reporting
- Comprehensive audit trails for all wallet operations
- Automated regulatory reporting templates
- Real-time balance reconciliation and proof of reserves
- Integration with compliance monitoring tools
Operational Support
- 24/7 technical support and incident response
- Regular security audits and penetration testing
- Ongoing compliance consultation and updates
- Training for exchange operations team
Business Value
Measurable outcomes and benefits
Regulatory Approval
Successfully met all SFC custody requirements and obtained necessary licenses for operation
Faster Time to Market
Reduced infrastructure development time by 6-9 months compared to building in-house
Cost Efficiency
Significantly lower total cost of ownership compared to building and maintaining proprietary custody systems
Zero Security Incidents
Maintained perfect security record with no breaches or unauthorized access since launch
Operational Excellence
99.9% uptime with average deposit/withdrawal processing time under 10 minutes
Scalability
Infrastructure ready to support 10x growth in users and transaction volumes
Need Enterprise Custody Solutions?
Learn how DACC can help your exchange meet regulatory requirements while maintaining security and efficiency