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

Line Corp Close to Launching Cryptocurrency Exchange

Neil Dennis

Line Corp, the Japanese messaging business, is just days away from being granted a domestic license to launch a new cryptocurrency exchange, according to reports on Thrusday.

report by Bloomberg suggested Japan's Financial Services Agency (FSA) could issue the license as early as this month, according to "people familiar with the matter".

The exchange, to be called BitMax, could then begin operating within weeks - allowing Line's 80 million Japanese users to trade crpytocurrencies, Bloomberg's unnamed sources said.

The sources said BitMax would be using the same back-end technology as BitBox, a Singapore-based cryptocurrency exchange that Line established for worldwide users last year. The regulatory issues with licensing, however, prevents Japanese users from trading on BitBox.

Line has applied for a separate banking license which has been pending since last year. In November 2018 the subsidiary Line Financial said it had agreed to establish a joint venture with Mizuho Financial Group to launch a new bank.

Line is among a growing number of tech and social media groups to branch out into cryptocurrencies.

Earlier this week, Facebook made a major impact with its announcement that it was to launch a cryptocurrency called Libra and a crypto-asset wallet called Calibra.

Meanwhile Yahoo Japan Corp has alread launched its own cryptocurrency exchange having received its FSA license earlier this year.

AmazonPay, which would be the most likely to go down a similar route in the Amazon universe, said earlier this month it may consider such a move a few years down the line.

Patrick Gaulthier, vice president of Amazon Pay, said at a conference on June 10:

At Amazon, we deal with data a lot, so I’ll be happy to have that conversation two or three years from now

Line already has its own native token called Link, which trades on BitBox.

Having received media requests on Thursday for more information on its Japanese exchange business plans, Line issued the following statement on its website:

Some media have reported that LINE Corporation (“LINE”) will launch a crypto currency business in Japan. However, this is not an official announcement from LINE, and no such decision has been made

Statement to the Media