Digital asset exchange Bitfinex announced on Wednesday it has joined forces with digital asset custody provider Koine to launch an institutionally oriented post-trade service, enabling investors to mitigate counterparty risk and the use of private keys in the clearing and settlement of cryptocurrencies.
Through the collaboration, 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. Bitfinex further stated:
“The collaboration with Koine 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. By delivering cross-venue operability, and real-time settlement, with cleared funds, algorithmic traders can dramatically increase capital efficiency leading to a huge growth in trading volumes.”
Speaking about the partnership, Hugh Hughes, Chairman and CEO at Koine, shared:
“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.”
The collaboration with Koine comes just days after Bitfinex announced it is offering Bitcoin Dominance (BTCDOM) Perpetual Swap through its digital asset exchange. The platform claims Bitfinex Derivatives is the first derivatives platform to offer Bitcoin BTCDOM, which enables investors to take a position on the market weighting of the world’s biggest cryptocurrency.