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:
Today is the happiest day of my career. Being a @Bitstamp customer since 2013 and head of @Cinnober's cryptocurrency efforts since 2016, it's been a personal dream of mine to bring the capabilities of our two firms together for years. Today is *that* day.https://t.co/pxIWEYvVkF— Eric Wall (@ercwl) November 5, 2018
The trading engine technology at @Cinnober is best-in-class. If there was ever any uncertainty from the SEC to approve a bitcoin ETF owing to exchange immaturity, this is a step forward to close that gap. Bitstamp will be running on the same tech as the London Metal Exchange now.— Eric Wall (@ercwl) November 5, 2018
Featured Image Courtesy of Bitstamp