zerohash is a back-office infrastructure provider. We offer a B2B2C crypto-as-a-service infrastructure to front-end platforms e.g. MoneyLion, tastytrade. zerohash offers services via API that can then be enabled by the front-end platform, with whom our shared customers interact with zerohash via an app or front end. Customers sign a zerohash User Agreement and are a shared customer with the front-end platform.
How are my assets secured?
In the United States, zerohash carries out its custodial services through zerohash LLC and its liquidity services through zerohash Liquidity Services LLC. Both entities are New York BitLicensed entities, and all assets are held at zerohash LLC, which is registered to operate in 51 US jurisdictions. For the full list of zerohash licenses, please refer here.
All customer assets are held 1:1, and zerohash is not able to move, encumber, or pool client funds without client direction. As such, “a run” is not possible. Assets are held in a combination of hot and cold storage.
zerohash is well capitalized with leading institutions partnered with us, including Stripe and tastytrade. Our investors include Bain Capital and Point 72. Additionally, we have a strong balance sheet that is audited annually by independent and external auditors in accordance with GAAP principles.
Since beginning operations in 2017, zerohash has put customer protection at the core of its business including:
- Physical segregation and separate accounting for the customer funds and virtual currency: Cryptocurrency is held by zerohash for the customer’s benefit and title is with the customer at all times. In accordance with best industry practices, zerohash does not commingle any zerohash assets with customer assets. Additionally, the zerohash user terms are designed to eliminate the possibility of a debtor/creditor relationship between the customer and zerohash whereby customer assets are assets of zerohash in the event of zerohash’s bankruptcy.
- zerohash does not operate a directional trading desk: this is an example of ensuring there are no potential conflicts of interest with customers.
- Customer assets are held 1:1 and never re-hypothecated (i.e.lent or used as collateral): As a NYDFS regulated Bitlicensee, zerohash must custody funds in accordance with 23 CRR-NY 200.9 which requires that crypto assets are held 1:1. There is no rehypothecation of funds. For example, zerohash has never allowed the existence of “earn” products through centralized lending. zerohash’s affiliates must also prove its compliance with these requirements by submitting to regular examinations and providing annual audited financial statements to all of its regulators.
Can I withdraw my assets from zerohash?
zerohash, as the infrastructure provider, technically supports both deposits and withdrawals of crypto assets via on-chain blockchain transfers. However, this functionality must be enabled by the platform where customers access their crypto services account. Customers should review the user terms of the front-end platform through which they access the zerohash services for information on the support of this functionality.