On Wednesday (May 13), digital asset exchange Bitfinex and crypto custody/settlement provider Koine announced the launch of “an institutionally oriented post-trade service” that enables “investors to mitigate counterparty risk and the use of private keys in the clearing and settlement of cryptocurrencies.”
According to the press release shared with CryptoGlobe, Koine customers gain access to a post-trade service “specifically designed for institutional investors to mitigate counterparty, insolvency and credit risks of trading on exchanges.”
It seems that “Koine customers who also have an account on Bitfinex will be able to obtain a line of credit on the Bitfinex trading platform using bitcoin or other cryptocurrencies held with Koine.”
It is important to point out that this service supports real-time settlement:
“We provide millisecond settlement within our eco-system of partner exchanges and brokers.
“Our service significantly reduces counter-party and settlement risks for fiat and digital asset trading and, with legal segregation of our client’s assets, minimises any insolvency risks.
“Our solution provides real time settlement in multiple fiat and digital currencies.”
This collaboration “delivers a trading environment that meets the needs of institutional investors, providing fund managers with a separate custody solution while maintaining continuous ownership throughout the trade lifecycle.” It should allow algorithmic traders to “dramatically increase capital efficiency leading to a huge growth in trading volumes.”
Hugh Hughes, Chairman and CEO at Koine, had this to say:
“Collaborating with Bitfinex to help bring new funds into their trading environment is an extremely important step in our evolution.
“It is leading exchanges like these that will benefit from the shift to a more traditional market structure that will quickly lead to institutional capital participation and the rapid growth of trading from algorithmic funds.”
As for Bitfinex CTO Paolo Ardoino, he stated:
“We have always focused on building a service fit for institutional trading. In this collaboration with Koine for the delivery of custody post-trade infrastructure, we make another step on the path towards massive institutional participation in the crypto-trading market.”
Featured Image Courtesy of CryptoCompare