PolySign, Inc. is a pioneering financial technology firm headquartered in Oakland, California, with additional offices in San Francisco, California, and New York, New York. Founded in 2017, PolySign specializes in the development of blockchain-enabled infrastructure for institutional investors, focusing on the custody, trading, and administration of digital assets across the capital markets and payments sectors.

Overview

PolySign was established by a team possessing deep expertise in both the traditional financial services industry and blockchain technology. This unique blend of knowledge has positioned PolySign as a leader in the institutional digital asset space. The company's mission is to facilitate the global adoption and management of digital assets by offering state-of-the-art, secure, and scalable infrastructure solutions that meet the complex needs of institutional investors.

Founding Team and Leadership

• Jack McDonald, CEO, brings a wealth of experience from his time as CEO of Conifer Financial Services,^[1] where he significantly grew assets under administration (AUA) from $5B to $125B.
• Arthur Britto and David Schwartz, both co-founders of Ripple and creators of the XRP cryptocurrency, contribute their extensive blockchain expertise to PolySign^[2]. Britto serves as President, while Schwartz is involved as a Board Member and Advisor.

Investors and Funding

PolySign has attracted attention and investment from several key players in the venture capital and technology investment space, including:^[3]

• Ride Ventures
• Greg Arrese, Angel Investor and Founder of Ride Ventures
• CRCM Ventures
• Kilowatt Capital

In its Series C funding round, PolySign raised $53 million, led by notable firms such as Cowen Digital, Brevan Howard, and GSR, and secured a $25 million credit facility with Boathouse Capital. These funds are earmarked for accelerating growth and expanding operations.

Subsidiaries and Key Initiatives

PolySign has significantly expanded its capabilities and service offerings through strategic acquisitions and the development of innovative technologies. Below are key subsidiaries and initiatives that have played a pivotal role in PolySign's growth and expansion in the digital asset space.

MG Stover

MG Stover, acquired by PolySign in April 2022, is a leading full-service fund administration firm dedicated to the alternative investment industry. Founded on the expertise of former auditors and fund operators, MG Stover offers specialized services tailored to hedge funds, private equity funds, and venture capital funds. With approximately $40 billion in digital assets under administration, MG Stover has become the largest digital fund administrator in the United States. Its services include specialized fund accounting, treasury management, and comprehensive KYC/AML due diligence and offshore compliance. The acquisition has enabled PolySign to deliver a comprehensive suite of custody, trading, and administration offerings to institutional investors in the cryptocurrency and digital asset sectors.

Standard Custody & Trust Co.

Standard Custody & Trust Co., a subsidiary of PolySign, was a New York-regulated custodian providing next-generation qualified custodian services with novel, patented technology for securing secret keys. As a key component of PolySign's product family, Standard Custody offered a security program that combined proprietary blockchain technology, end-to-end encryption, and distributed trust protocols to safeguard private keys. This approach provided many competitive advantages, including conflict-free segregation, regulatory compliance, security, speed, and fiduciary key management. In 2023, Standard Custody & Trust established a relationship with Jake Claver and Digital Ascension Group to offer the first Digital Family Office custody solution^[4] for digital assets on the platform.

In February 2024, Ripple announced the acquisition^[5] of Standard Custody & Trust Co.^[6], marking a significant development that underscores Ripple's commitment to regulatory compliance and its ambition to strengthen its product offerings in the digital asset market.

AtomicNet

AtomicNet is a settlement layer^[7] developed by PolySign, designed to offer instant and automatic settlement for a range of assets. Expected to launch in the first quarter of 2023, AtomicNet represents PolySign's commitment to innovation in the digital asset space. This technology aims to facilitate efficient and secure transactions across various asset classes, supporting PolySign's vision of integrating with existing financial organizations and global markets. AtomicNet is anticipated to play a crucial role in PolySign's efforts to provide institutional-grade custody and infrastructure support for asset managers and trading platforms, further enhancing the global, secure, and multi-currency solution necessary for digital assets to reach their full potential.

Through these subsidiaries and key initiatives, PolySign has established itself as a comprehensive provider of solutions in the digital asset ecosystem. MG Stover enhances PolySign's fund administration capabilities, Standard Custody & Trust Co. (now part of Ripple) provided a foundation for secure digital asset custody, and AtomicNet represents the future of asset settlement technology. Together, these components underscore PolySign's commitment to driving the adoption of digital assets by building best-in-class infrastructure for institutional investors.

Strategic Partnerships and Acquisitions

PolySign has established strategic partnerships and made acquisitions to bolster its offerings, including:

• A strategic partnership with Cowen Digital to integrate PolySign’s technology into Cowen’s sales and trading platform.
• The acquisition of MG Stover, a leader in digital fund administration, enhancing PolySign's capabilities in custody, trading, and administration of cryptocurrency and digital assets.

Regulatory Compliance and Innovations

PolySign and its subsidiaries operate under strict regulatory compliance, with Standard Custody & Trust Co. being a regulated custodian by the New York State Department of Financial Services (NYDFS). The company is also a member of The United States Travel Universal Solution Technology (TRUST), indicating its commitment to maintaining compliance and security in the digital asset space.

Raymond Fuentes interviews Polysign CEO, Jack McDonald

Future Directions

With a focus on expanding its services to Europe, the Middle East, and Asia, PolySign aims to support decentralized finance (DeFi) platforms and continue its growth in the digital asset market. The acquisition of Standard Custody & Trust Co. by Ripple in February 2024 further demonstrates PolySign's commitment to regulatory compliance and innovation in the financial technology sector.

PolySign, Inc. represents a significant advancement in the infrastructure supporting the institutional use of digital assets. Through its innovative solutions, strategic partnerships, and commitment to security and regulatory compliance, PolySign is poised to play a pivotal role in the broader adoption and management of digital assets by institutional investors worldwide.