Crypto Exchange Bitstamp: Our New Matching Engine Will Be Up to 1,250 Times Faster

Siamak Masnavi

On 5 November 2018, cryptoasset exchange Bitstamp announced that it had partnered with Cinnober, a leading provider of trading and clearing technology, in order to replace its in-house developed matching engine with Cinnober’s "TRADExpress Trading System". The customized software "will be hosted and operated by Bitstamp."

As reported by CryptoGlobe, Bitstamp, which was founded in 2011 by Nejc Kodrič and Damijan Merlak, got acquired by European investment firm NXMH. In an article posted on its website, Bitstamp explained why it chose to partner with Cinnober:

"We chose Cinnober because of their proven track-record in worldwide financial marketplaces, their understanding of our vision and ability to work closely with us to customize the technology to meet our needs."

Stockholm-headquartered Cinnober was founded in 1998. Its customers include Australian Securities Exchange, Athens Stock Exchange, Dubai Gold & Commodities Exchange, Johannesburg Stock Exchange, and London Stock Exchange.

David Osojnik, Bitstamp's Chief Technology Officer, says:

“While Bitstamp’s matching engine was already very good by crypto standards, this will put us in the same league as traditional exchanges with decades of experience. Our platform’s order matching speed is expected to become 1250x faster, while throughput will increase by 400x.”

The implementation will be done in several stages, with the first stage taking place in Q1 of 2019; the new matching engine should be fully integrated into Bitstamp by the end of Q2 2019.

According to Cinnober's press release, Peter Lenardos, the CEO of the Cinnober Group, stated:

“We are excited to announce this partnership with Bitstamp, facilitating continued success for their marketplace. Bitstamp is one of the world’s leading bitcoin exchanges and has a position of trust in the digital currency trading community. By upgrading their trading technology to further improve performance and stability as interest from investors and regulators grow, they demonstrate their firm commitment to providing a safe and reliable marketplace.”

As for Bitstamp's CEO (Nejc Kodrič), he said:

"This is a crucial step on our mission to bridge the gap between crypto and traditional finance."

Eric Wall, Cinnober's Cryptocurrency & Blockchain Lead, tweeted:

 

Featured Image Courtesy of Bitstamp

Coinbase CEO Talks About Staking, Voting, Margin Trading, Lightning Network, and More

Siamak Masnavi

On Thursday (May 16), Brian Armstrong, Co-Founder and CEO of digital asset exchange Coinbase, talked about upcoming near and medium term changes to his firm's products and services.

Armstrong's comments came during an Ask Me Anything (AMA) session on YouTube, where he was answering the most popular questions from the crypto community on Twitter.

Here are the main highlights:

  • Price Alerts: This feature might "might be coming soon" to the Coinbase mobile app. Coinbase has been working on improving the support for price alerts in the web versions of its platform. Initially, users were given the ability to set price alerts manually (e.g. "alert me when Bitcoin price goes below $5,000"), but lately Coinbase has been experimenting with machine learning so that users are notified of significant price changes automatically.
  • Staking: This feature was recently added to Coinbase Custody (which is for institutional customers) to support Proof-of-Stake (PoS) cryptocurrencies such as Tezos (XTZ), but obviously retail investors are interested in this too. 
  • Voting (Onchain Governance): Not launched yet, but internally, it is being discussed, and more specifically how to make it as simple as possible for users.
  • Margin Trading on Coinbase Pro: This is a commonly requested feature. Several other trading platforms already have this, and it is a popular feature. Coinbase is trying to figure out the best way to do this from a regulatory point of view.
  • Remittances to developing countries: Setting up exchanges in such places (e.g. Zimbabwe) is often more difficult either because the regulatory environment is not well-established and/or due to a high amount of corruption. So, the best way to send money to these places might be to send crypto to the wallet of the recipient and then to ask him/her to either hold crypto until they need to spend it or to get it changed to fiat via a local exchange (perhaps, via a P2P exchange such as LocalBitcoins).
  • Coinbase Card: This debit card (which lets you spend your crypto -- which happens by the card automatically converting, at transaction time, from crypto to fiat -- at virtually any merchant that accepts contactless cards or Apple Pay or Google Pay) was launched in the UK last month, but customers in the U.S. are wondering when it will get launched there. Armstrong cannot give a date. 
  • Tax Reporting Tools: Armstrong that their tax tools "could be a lot better." Coinbase is looking into how it can help its customers pay less tax but it seems like it has not figured out yet the best way to offer tax advice without effectively becoming the customer's accountant or tax adviser.
  • Coinbase in Canada: Coinbase was operating in Canada a while ago, but due to some issues with their payment partner, they had to suspend that service, but they are hoping to return to Canada soon.
  • Support for the Lightning Network: 3-4 Weeks ago, Armstrong asked some of Coinbase's developers what was the coolest technology they were playing with during weekends. He got around 40 answers. The most common answer was the Lightning Network. That gave him "a lot of confidence" that this was something that Coinbase should support. However, he is not sure when this support will be implemented.