Providing custody and clearing services for quantitative funds: Gate's institutional-grade solution for private wealth management

In the context of the ongoing maturity and institutionalization of the global digital asset industry, quantitative funds are demanding higher standards for custody, security, clearing and settlement, as well as asset liquidity. As a leading digital asset service platform, Gate has launched custody and clearing/settlement solutions tailored for institutional clients—including quantitative funds, hedge funds, family offices, and others—through its Gate Private Wealth Management business. This article will comprehensively introduce Gate Private Wealth’s capabilities and advantages in institutional-grade custody, clearing and settlement, risk control, and compliance, helping quantitative funds understand why choosing Gate as their digital asset service partner is the right decision.

What is Gate Private Wealth Management and Institutional Custody Service?

Gate Private Wealth Management is a digital asset management service designed specifically for high-net-worth individuals and institutional clients. To meet the operational needs of institutional clients’ quantitative strategies, Gate has built a highly secure, low-friction custody and clearing/settlement system that supports mainstream digital assets and is compatible with various derivatives and liquidity management functions essential for executing quantitative strategies.

Institutional custody service refers to Gate’s role in securely safeguarding digital assets on behalf of fund clients, while providing independent settlement ledgers, asset reports, and risk isolation mechanisms. The entire process strictly separates client assets from the company’s own assets, ensuring the independence and security of custody assets.

Why Do Quantitative Funds Need Professional Custody and Clearing/Settlement Services?

Quantitative funds typically rely on algorithmic and historical data-driven automated trading strategies, which place high demands on system performance, trading speed, fund security, and settlement efficiency. Compared to traditional hedge funds, digital asset quantitative funds also face unique challenges such as market volatility, compliance requirements, and cross-platform trading complexities:

• High Market Volatility: According to Gate market data, as of January 28, 2026, Bitcoin (BTC) price is $89,305 with a 24-hour trading volume of $1.24 billion, and a 24h price fluctuation of +0.82%; Ethereum (ETH) price is $3,013.33 with a 24-hour trading volume of $531.53 million, and a fluctuation of +2.68%. This high volatility necessitates real-time risk monitoring mechanisms within custody and settlement systems to prevent unexpected losses and settlement errors.
• Diverse Asset Classes: Quantitative strategies involve not only mainstream assets like BTC/ETH but also leverage tokens, options, perpetual contracts, and other derivatives, which increase the complexity of clearing and settlement.
• Strict Regulatory Compliance: When managing assets, institutional clients often need to meet KYC/AML verification, audit reporting, and compliance record-keeping requirements, which standard exchange services may not fully cover.

Core Capabilities of Gate Private Wealth Custody and Clearing/Settlement

Gate Private Wealth Management has established the following key capabilities to meet institutional-level demands:

Independent Custody System and Cold/Hot Wallet Segregation Security Strategy

The core of custody services is asset security. Gate employs a multi-layered cold/hot wallet architecture combined with hardware security modules (HSM) and multi-signature mechanisms to safeguard assets:

• Cold Wallet Storage: The majority of client assets are stored in isolated offline cold wallets, physically separated from online networks to mitigate cyber risks.
• Hot Wallet Management: Only necessary liquidity hot wallets are maintained for trading and settlement, with strict signing procedures and permission controls to reduce online risks.

This architecture not only provides robust protection but also enables transparent auditing and verification of wallet assets.

Professional Clearing and Settlement System: Real-Time Reconciliation and Cross-Market Settlement

The clearing and settlement system is a critical support for quantitative fund operations. Gate’s clearing and settlement services offer:

• Real-Time Ledger and Fund Reconciliation: Every transaction and post-strategy execution fund flow is updated in real-time on the settlement ledger.
• Cross-Market Settlement Support: Whether spot trading or derivatives trading, all can be centrally cleared through Gate’s unified settlement system, effectively reducing delays caused by cross-platform fund transfers.
• Net Asset Value (NAV) Calculation: Provides institutional clients with precise NAV reports to support fund audits and performance assessments.

This real-time, unified clearing and settlement system is especially important for high-frequency quantitative strategies, significantly improving trading efficiency.

Compliance, Risk Control, and Transparent Auditing

Institutional-grade custody and clearing/settlement services go beyond technology, involving strict compliance:

• Robust KYC and AML Mechanisms: All institutional clients must undergo rigorous compliance checks before access, ensuring asset sources are legitimate.
• Independent Audits and Asset Reports: Gate provides standardized monthly/quarterly audit reports covering asset classification, risk exposure, and performance, helping institutions meet internal and regulatory reporting requirements.

Through strict compliance processes and transparent record-keeping, quantitative funds can minimize custody risks.

High-Performance API and Integrated Developer Support

Efficient execution of quantitative strategies depends on fast, stable trading APIs. Gate offers:

• High-Throughput Trading API: Supports batch orders, algorithmic orders, and more.
• Real-Time Market Data Push: Ensures quantitative strategies can access market data for BTC, ETH, and other major assets with minimal latency.
• Flexible Deposit and Fund Transfer Interfaces: Internal settlement systems linked with APIs enable automated, monitored fund transfers.

This developer-level support allows quantitative teams to focus more on strategy development rather than repetitive clearing and settlement operations.

How Does Gate Private Wealth Enhance the Competitiveness of Quantitative Funds?

By providing professional custody and clearing/settlement services, Gate Private Wealth Management significantly enhances institutional competitiveness in the following ways:

• Improved Capital Efficiency: Centralized custody and settlement reduce capital turnover costs.
• Faster Execution: Unified ledgers and high-speed APIs accelerate strategy response times.
• Enhanced Asset Security: Layered wallets and multi-signature systems greatly reduce risks.
• Worry-Free Compliance Operations: Auditable reports and compliance workflows meet regulatory and internal review standards.

In summary, partnering with Gate allows quantitative funds to focus on core strategy R&D while outsourcing infrastructure risks and operational costs to a professional service platform.

Forward-Looking Value of Gate Private Wealth Management

As the digital asset market becomes increasingly institutionalized, traditional retail-level services can no longer meet the high standards of quantitative funds. Gate Private Wealth’s institutional-grade custody and clearing/settlement services not only feature industry-leading security and efficiency but also continuously deepen integration with the market ecosystem, including mainstream assets, stablecoins, and innovative derivatives.

According to Gate market data as of January 28, 2026:

• Bitcoin (BTC) current price: $89,305, Market Cap: $1.76 T, Market Share: 56.43%
• Ethereum (ETH) current price: $3,013.33, Market Cap: $353.69 B, Market Share: 11.30%
• GateToken (GT) current price: $9.99, Market Cap: $986.53 M, Market Share: 0.036%

These figures indicate that mainstream assets still dominate the market, and the efficiency of clearing and custody is especially critical for institutional players. Through Gate Private Wealth Management’s institutional services, Gate provides scalable, secure, compliant, and efficient custody and clearing/settlement support for quantitative funds, giving them a clear advantage in future crypto asset investment competitions.

Conclusion

As institutional demand for digital asset exposure continues to grow, choosing professional custody and clearing/settlement services has become a trend for quantitative funds. Gate Private Wealth Management offers a one-stop solution with its customized institutional-grade custody system, real-time settlement ledgers, strict compliance and risk control mechanisms, and high-performance trading APIs, helping institutions improve operational efficiency and asset security in complex markets.

For more information about Gate Private Wealth Management’s institutional service solutions, please visit the Gate official website for detailed information.