{"id":29739,"date":"2026-03-19T11:03:01","date_gmt":"2026-03-19T11:03:01","guid":{"rendered":"https:\/\/davies-group.com\/consulting\/?post_type=blog&p=29739"},"modified":"2026-03-27T14:43:13","modified_gmt":"2026-03-27T14:43:13","slug":"from-brokerage-to-blockchain-2","status":"publish","type":"blog","link":"https:\/\/davies-group.com\/consulting\/blog\/from-brokerage-to-blockchain-2\/","title":{"rendered":"From Brokerage to Blockchain"},"content":{"rendered":"

Financial institutions are rapidly adding crypto trading and blockchain based assets to their brokerage platforms. Many assume their existing anti\u2011money laundering (AML) controls will translate easily. They won\u2019t. Crypto behaves differently from traditional assets, and its risks demand tailored controls.<\/p>\n

\n

<\/h2>\n

Where Traditional Brokerage Models Fall Short<\/h2>\n

Traditional AML frameworks rely on predictable settlement, regulated intermediaries and known counterparties. Crypto breaks this model. Transactions occur on decentralised networks, ownership sits on public ledgers, and assets can move across chains within minutes. When customers withdraw to external wallets, assets leave the institution\u2019s field of view. If firms treat crypto like equities or ETFs, they risk missing key red flags and creating gaps in sanctions and transaction\u2011monitoring programmes.<\/p>\n

<\/h2>\n

What a Modern Crypto AML Framework Needs<\/h2>\n

A successful framework starts with a clear operating model. Firms must define whether they act as execution agents, custodians, or providers of withdrawal and transfer services. Each activity carries distinct risks.<\/p>\n

Customer risk profiling must also evolve. Static KYC is not enough. Institutions need dynamic segmentation that considers behaviour such as trading frequency, wallet usage, and interaction with decentralised services. Sanctions controls must pick up indirect exposure to high\u2011risk wallet clusters and suspicious transaction patterns, not just names.<\/p>\n

Effective monitoring blends traditional surveillance with on\u2011chain insights. Analysts need clear guidance that explains how to use probabilistic blockchain signals without over\u2011relying on them. Strong governance then binds the framework together, ensuring transparency around thresholds, model choices and limitations.<\/p>\n

<\/h2>\n

Download the Full White Paper<\/h2>\n

Our full white paper explores these topics in detail, including practical examples, governance models and implementation guidance. If you\u2019re planning to introduce crypto trading \u2014 or strengthen your current controls \u2014 download the complete report to access a clear roadmap for safe and compliant growth.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Developing an AML Framework for Crypto Trading Embedded in Brokerage Accounts<\/p>\n","protected":false},"featured_media":29740,"parent":0,"menu_order":0,"template":"","format":"standard","meta":{"_acf_changed":false},"practices":[],"industries":[],"capabilities":[109],"class_list":["post-29739","blog","type-blog","status-publish","format-standard","has-post-thumbnail","hentry"],"acf":[],"yoast_head":"\nFrom Brokerage to Blockchain - Davies<\/title>\n<meta name=\"description\" content=\"Financial institutions are rapidly adding crypto trading and blockchain\u2011based assets to their brokerage platforms.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/davies-group.com\/consulting\/blog\/from-brokerage-to-blockchain-2\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"From Brokerage to Blockchain - Davies\" \/>\n<meta property=\"og:description\" content=\"Financial institutions are rapidly adding crypto trading and blockchain\u2011based assets to their brokerage platforms.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/davies-group.com\/consulting\/blog\/from-brokerage-to-blockchain-2\/\" \/>\n<meta property=\"og:site_name\" content=\"Davies\" \/>\n<meta property=\"article:modified_time\" content=\"2026-03-27T14:43:13+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/davies-group.com\/consulting\/wp-content\/uploads\/2026\/03\/AdobeStock_444918960.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"5100\" \/>\n\t<meta property=\"og:image:height\" content=\"1800\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/davies-group.com\/consulting\/blog\/from-brokerage-to-blockchain-2\/\",\"url\":\"https:\/\/davies-group.com\/consulting\/blog\/from-brokerage-to-blockchain-2\/\",\"name\":\"From Brokerage to Blockchain - Davies\",\"isPartOf\":{\"@id\":\"https:\/\/davies-group.com\/consulting\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/davies-group.com\/consulting\/blog\/from-brokerage-to-blockchain-2\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/davies-group.com\/consulting\/blog\/from-brokerage-to-blockchain-2\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/davies-group.com\/consulting\/wp-content\/uploads\/2026\/03\/AdobeStock_444918960.jpeg\",\"datePublished\":\"2026-03-19T11:03:01+00:00\",\"dateModified\":\"2026-03-27T14:43:13+00:00\",\"description\":\"Financial institutions are rapidly adding crypto trading and blockchain\u2011based assets to their brokerage platforms.\",\"breadcrumb\":{\"@id\":\"https:\/\/davies-group.com\/consulting\/blog\/from-brokerage-to-blockchain-2\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/davies-group.com\/consulting\/blog\/from-brokerage-to-blockchain-2\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/davies-group.com\/consulting\/blog\/from-brokerage-to-blockchain-2\/#primaryimage\",\"url\":\"https:\/\/davies-group.com\/consulting\/wp-content\/uploads\/2026\/03\/AdobeStock_444918960.jpeg\",\"contentUrl\":\"https:\/\/davies-group.com\/consulting\/wp-content\/uploads\/2026\/03\/AdobeStock_444918960.jpeg\",\"width\":5100,\"height\":1800,\"caption\":\"Structure of connected lines and dots. 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