Empowering a Multi-Strategy Crypto
Fund with Utila’s Agile Custody Solutions
Karatage, a London-based multi-strategy crypto hedge fund, is working with Utila to overcome the challenges of managing a diverse and rapidly evolving portfolio. By leveraging Utila’s cutting-edge digital asset platform, Karatage has streamlined its operations, enhanced security, and gained the agility needed to stay ahead in the fast-paced world of crypto investments.
Karatage is a London-based hedge fund specializing in multi-strategy crypto investments. Operating across both direct investments and fund-of-funds strategies, Karatage invests in cryptocurrencies, fund managers, and blockchain companies shaping the future. Since 2017, the fund has served as an LP in multiple Tier-1 fund managers.
With a sector-agnostic, deal-agnostic, and stage-agnostic approach, Karatage capitalizes on opportunities across the entire crypto ecosystem, from large-cap tokens to emerging and niche blockchain projects. Karatage’s technical infrastructure is designed to support its dynamic investment strategies, including on-chain trading, OTC transactions, and interactions with DeFi protocols. Given the complexity of managing assets across multiple blockchain networks, secure, flexible, and highly responsive custody solutions are a critical component of its operations.
The Challenge
Navigating the Complexity of Emerging Chains and Custody Solutions
As a multi-strategy fund, Karatage’s investment approach demands flexibility and adaptability. However, the fund faced significant challenges in managing its crypto operations before adopting Utila:
Limited Support for Emerging Chains:
Karatage’s investment strategy often involves newer blockchain projects and tokens, many of which were unsupported by legacy custody providers. This forced the fund to rely on a patchwork of hot wallets, exchange accounts, and other interim solutions, which were unsustainable and insecure.
Inflexible Approval Workflows:
Existing custody platforms lacked the granularity and customization needed to align with Karatage’s complex operational workflows.
Delayed Integrations:
Competing providers were slow to integrate new chains, DeFi protocols and other necessary solutions, hindering Karatage’s ability to capitalize on emerging opportunities.
The Solution
Utila’s Agile and Customizable Custody Platform
Karatage evaluated multiple providers and finally chose Utila to address these challenges and future-proof its crypto operations. Utila’s institutional-grade wallet platform offered the flexibility, speed, and security Karatage needed:
Rapid Chain Integrations:
Utila’s ability to quickly integrate new chains and tokens was a game-changer for Karatage. The fund now uses Utila to custody newer assets, ensuring it can capitalize on emerging opportunities without delay.
Customizable Operational Workflows:
Utila’s fine-grained policy engine allows Karatage to set up highly customized approval flows, ensuring precise security, governance, and seamless alignment with operational requirements.
Enhanced Signing Security:
Compared to legacy providers, Utila provided significantly better visibility into signing messages, ensuring that approvals were transparent and secure without requiring parallel verification workflows.
White-Glove Support:
Utila’s responsive, high-touch customer service sets was another key differentiator, providing Karatage with dedicated support via Slack, Telegram, and direct calls whenever required. From rapid issue resolution to custom feature development, Utila ensures personalized assistance tailored to needs.
The Results
Streamlined Operations and Future-Proofed Infrastructure
Since implementing Utila, Karatage has experienced significant improvements in its crypto operations:
Eliminated Interim Solutions:
Utila has replaced Karatage’s patchwork of hot wallets and exchange accounts with a secure, unified custody platform.
Enhanced Agility:
With Utila’s rapid chain integrations, Karatage can now custody and trade newer tokens and interact with emerging DeFi protocols faster than ever before.
Improved Security and Compliance:
Utila’s robust security features and customizable workflows have strengthened Karatage’s operational controls and compliance posture.
Scalable Infrastructure:
Utila’s platform is designed to grow with Karatage, ensuring the fund can continue to expand its portfolio without compromising on security or efficiency.
Karatage is deepening its integration with Utila by migrating more of its existing wallets from legacy providers and leveraging the Utila API for seamless accounting connectivity.
Since implementing Utila, the firm has streamlined custody operations, eliminating temporary wallet solutions, reducing complexity, and enhancing the security and efficiency of its on-chain transactions. While a full migration remains the goal, Utila has already become the default custody platform for Karatage’s new blockchain investments.
Utila has been a critical partner in helping us navigate the complexities of crypto custody. Their platform’s speed, flexibility, and security have allowed us to focus on what we do best—investing in the future of blockchain technology. The team’s responsiveness and commitment to innovation have been invaluable, and we look forward to continuing this partnership as we grow.
Michael Vasiloudis CTO of Karatage
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