Bittrex Acquires 10% Stake In Malta-Based Blockchain Firm Palladium

  • US-based cryptocurrency exchange Bittrex has acquired a 10 percent ownership stake in Malta-based blockchain startup Palladium.
  • Palladium aims to built a "unified" platform that bridges the gap between fiat and crypto-based payment systems.
  • Bittrex's stake in Palladium has been announced shortly after the two companies launched the very first Initial Convertible Coin Offering (ICCO), an effort to improve the current ICO model.

US-based cryptocurrency exchange Bittrex has reportedly acquired a 10 percent share in Malta-based blockchain startup Palladium. In July, Bittrex and Palladium had partnered to launch the world’s first Initial Convertible Coin Offering (ICCO), which aims to be an improved version of the current initial coin offering (ICO) model.

Improved, Regulated Crowdfunding For Crypto

As covered, the ICCO was developed to “give investors peace of mind” as there have now been many scams associated with ICOs. Each token issued to investors using this improved crowdfunding model is referred to as a “convertible warrant” which can be exchanged for shares in Palladium “three years after [its] issue date.”

Through its partnership with Bittrex and e-sports betting platform Unikrn, Palladium had also announced its plans to raise €150 million through the sale of its tokenized securities which started on July 25th and will end on September 30th.

According to the Times of Malta, Unikrn has a 15 percent share in Palladium and Investar Holding Corporation owns 85 percent of the Malta-based blockchain company. Investar Holding is fully owned by Paolo Catalfamo, the CEO and founder of Palladium.

Bridiging The Gap Between Fiat And Crypto

In order to bridge the gap between traditional finance and digital currencies, Palladium aims to become the world’s “first regulated unified platform.” As described on its official website, the company plans to develop a blockchain that “bonds banking with cryptocurrency.”

Palladium’s platform will be designed to offer its clients a “single, unified interface” for managing a diverse set of asset classes while also allowing them “to access a wide array of services denominated both in fiat and cryptocurrencies.”

Other services the platform intends to provide include paying for everyday purchases and bills with crypto or fiat currencies. Commenting on Bittrex’s role and recent investment in Palladium, Catalfamo said that:

“We are excited to have such a global player on board. Bittrex’s investment in Palladium is a confirmation of Malta’s sound decision to be at the forefront of regulating blockchain technology.”

Paolo Catalfamo

Self-Regulating Organization

Notably, Bittrex joined the newly established Virtual Commodity Association (VCA) Working Group on August 20th, which is an “industry-sponsored, self-regulatory organization” (SRO) that aims to monitor “virtual commodity marketplaces.”

Other crypto firms participating in the VCA include the Winklevoss-owned Gemini Trust Company, Luxembourg based bitcoin exchange Bitstamp, and US-based crypto exchange bitFlyer.

As CryptoGlobe reported on August 16th, the Ripple company named Bittrex as one of its first three “preferred” digital currency exchanges for Ripple’s xRapid transactions involving USD.

Bittrex and Ripple have also partnered in order to work collaboratively on an initiative that aims to develop a “healthy” business environment for cryptocurrency exchanges. As covered, other partners involved in this project include Mexican digital currency trading platform Bitso and Philippines-based crypto exchange Coins.ph.

Sub-accounts in Crypto: What They Are and How They Work

 

Julia Gerstein, a crypto trading bots enthusiast and a content writer at TradeSanta. My final goal is to help readers find what they need, understand what they find, and use what they understand appropriately.


Speaking generally, a sub-account is a segregated smaller account that is tied to a larger primary account. Sub-accounts may serve different functions depending on the objectives of their owners. The term can refer to multiple email addresses linked to one user or secondary accounts tied to a primary account with a financial institution or a bank.

For this article, we will be looking at sub-accounts as they exist in the crypto industry, and specifically on trading platforms.

Built-in Sub-Accounts

On trading platforms, the sub-accounts feature allows users to create a set of subsidiary accounts with different trading strategies, funds and end customers. On some platforms, general accounts already come with built-in sub-accounts.

For example, exchange platform Crypto Facilities provides each user with cash and margin accounts when they sign up. While deposits and withdrawals are completed with the cash account, trading an instrument requires users to make an internal transfer from a cash account to their margin account that corresponds to the instrument in question.

Each instrument has its own margin account. This grants users more control over their funds and allows them to manage risks for each instrument separately from their main balance.

Optional Sub-Accounts

Other cryptocurrency exchanges, such as Gemini and Binance, have launched sub-accounts as an optional feature for institutional investors.

As an optional feature, sub-accounts can serve to introduce additional security measures and different access levels between the main account and its subsidiaries. Binance has underlined the differences between a master account and its subsidiaries, providing the former with the exclusive ability to view all data and balances, transfer funds between accounts, and have full managerial control and access to a range of asset audit tools.

Here master accounts have sole control over the movement of assets between sub-accounts, and can grant each of them different access levels and permissions. This ensures that the main account has the power to direct and monitor the actions of all its associated accounts, while each sub-account can perform its function independently from other sub-accounts.

Not Only for Institutional Investors

While institutional investors have been able to create sub-accounts for a while, this feature is still being introduced by more and more major exchanges.

Now even individual investors can create subsidiary accounts to try and assess the performance of distinct trading strategies. For example, HitBTC recently introduced its own sub-accounts feature that is now available per user’s request.

At HitBTC, sub-accounts enable users to create separate subsidiary accounts with which they can utilize various trading styles and strategies with operational autonomy. While each sub-account is separate, all of them are still tied to a master account and contribute to the cumulative volume of all accounts connected to the master.

Because trading volume is measured cumulatively, the use of the subaccounts feature can open up additional benefits for traders such as lower commissions due to progressive fee tiers that reward users for contributing to the liquidity on the trading platform.

Therefore, users can perform a variety of different trading activities unconnected to each other, and all the activities will still weigh in the financial favor of the parties involved. Master accounts also have access to important data such as the performance of each sub-account and total trading fees of all linked accounts combined. While the feature is designed with institutional and corporate clients in mind, on HitBTC any user can create sub-accounts upon request.

The adoption of this feature by more and more trading platforms will be beneficial for both institutional and individual traders. Some users can utilize it to execute different trading strategies or try various algorithms with a clear picture of their effectiveness, others to manage their team and analyze the performance of each account securely and conveniently.

Featured image by Tyler Franta on Unsplash