Bitfinex collaborates with Koine to roll out a new crypto custody service
|- Bitfinex has joined forces with Koine, a crypto custody provider, to launch an institutional-grade crypto custody service.
- The service will enable investors to avoid counter-party risk in the clearing and settlement of crypto.
- It is worth noting that this new service will support real-time settlements.
Bitfinex exchange has recently partnered with Koine, a crypto custody/settlement provider, to launch "an institutionally oriented post-trade service.” The service will enable "investors to mitigate counter-party risk and the use of private keys in the clearing and settlement of cryptocurrencies."
According to a CryptoGlobe report, Koine customers will now gain access to a post-trade service "specifically designed for institutional investors to mitigate counter-party, insolvency and credit risks of trading on exchanges." It appears 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 worth noting that this new service will support real-time settlements.
We provide millisecond settlement within our eco-system of partner exchanges and brokers. Our service significantly reduces counterparty and settlement risks for fiat and digital asset trading and, with legal segregation of our client’s assets, minimizes 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 will allow algorithmic traders to "dramatically increase capital efficiency leading to a huge growth in trading volumes."
Hugh Hughes, Chairman and CEO of Koine, said:
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.
Bitfinex CTO, Paolo Ardoino, said:
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.
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