It was announced today San Francisco & NYC based OTC Exchange Network (OTCXN) closed a fresh Series A funding round for a blockchain-based P2P FX Trading Platform. Figures were not disclosed.
Phase one of the rollout will specifically target bank and non-bank market-makers who wish to price directly to retail brokers without Prime Brokerage and other intermediaries and their associated layers of cost.
The aim is to open up new markets by making it possible to onboard counterparties that do not have, or can not obtain, Prime Brokerage credit lines.
For firms that are able to secure credit lines through Prime Brokerage or through a Prime-of-Prime, it can reduce costs and increase collateral, counterparty and liquidity management options.
Rosario Ingargiola, Founder and CEO of OTCXN said:
“We are eliminating credit intermediation – it’s really that simple…starting with institutional FX trading. We have a technological solution to the biggest problem plaguing the biggest market in the world, the FX market. Unlike virtually all of the firms leveraging Blockchain or DLT for capital markets use cases, real-time clearing and settlement is but one feature of our total solution instead of the core value proposition.”
The company is also exploring ways to reduce capital costs for participating Prime Broker members while enabling them to earn Prime Brokerage-like fees, but without the legal and documentary overhead.
OTCXN plans to make the network offering available in NY4, LD4 and TY3. The solution requires no direct knowledge of blockchain or other underlying technologies.
The company announced it is still in stealth mode, and to follow their Twitter for tidbits of information.