Digital asset exchange Bitfinex, headquartered in the British Virgin Islands and London-based digital asset custody provider Koine have launched a post-trade service to enable institutional investors to mitigate counterparty risk and utilize private keys in the clearing and settlement of cryptocurrencies.
Through this collaboration, Koine’s customers will gain access to post trade solution from a UK Financial Conduct Authority licensed business. The service is specifically oriented towards institutional investors to mitigate counterparty, insolvency and credit risks of trading on exchanges. Koine customers who have an account on Bitfinex as well, will be able to obtain a line of credit on the Bitfinex trading platform with cryptocurrencies held with Koine. The settlement and segregated custody services for digital assets along with digital assets to fiat Koine offers, also provide an efficient, near real-time solution that obviates manual post-trade processes.
Bitfinex offers the provision of algorithmic trading to its clients and through is collaboration with Koine, delivers a trading environment for institutional investors. It also provides fund managers with a separate custody solution while also maintaining continuous ownership throughout the trade lifecycle. With cross-venue operation and real-time settlement, with cleared funds, algorithmic traders can dramatically increase capital efficiency and experience growth in trading volumes.
Koine’s security model deploys Digital AirlocksTM and replaces the cold storage and hot wallet configuration that can compromise the security of private keys because of its need to be “eye-balled” by staff. The combination of the new digital asset security model with fiat custody and DvP settlement that Koine provides, brings a post-trade solution that is suitable for traditional capital markets.
Hugh Hughes, Chairman and CEO at Koine said:
Collaborating with Bitfinex to help bring new funds into their trading environment is an extremely important step in our evolution. It is leading exchanges like these that will benefit from the shift to a more traditional market structure that will quickly lead to institutional capital participation and the rapid growth of trading from algorithmic funds.
Paolo Ardoino, CTO at Bitfinex commented:
We have always focused on building a service fit for institutional trading. In this collaboration with Koine for the delivery of custody post-trade infrastructure, we make another step on the path towards massive institutional participation in the crypto-trading market.
Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.