ROAD TOWN, British Virgin Islands, May 13 2020 – Bitfinex, a state-of-the-art digital asset exchange, and Koine, a London-based digital asset custody provider, have launched 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.
Koine customers gain access to a post-trade solution from a business licensed by the UK’s Financial Conduct Authority, a service specifically designed for institutional investors to mitigate counterparty, insolvency and credit risks of trading on exchanges. 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. The Koine service, which provides settlement and segregated custody services for digital assets along with digital assets to fiat, provides an efficient, near real-time solution that obviates manual post-trade processes.
As a cryptocurrency exchange offering capital markets grade trading infrastructure, Bitfinex is at the forefront of offering state-of-the-art services such as the provision of algorithmic trading. 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.
Koine’s unique security model, which deploys Digital AirlocksTM, replaces the cold storage and hot wallet model that can compromise the security of private keys as a result of still needing to be “eye-balled” by staff. By combining this new digital asset security model with fiat custody and DvP settlement, Koine provides a post-trade solution that is suitable for traditional capital markets.
“Collaborating with Bitfinex to help bring new funds into their trading environment is an extremely important step in our evolution.” said Hugh Hughes, Chairman and CEO at Koine: “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.”
“We have always focused on building a service fit for institutional trading,” said Paolo Ardoino, CTO at Bitfinex. “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.”
Founded in 2012, Bitfinex is a digital asset trading platform offering state-of-the-art services for digital token traders and global liquidity providers. In addition to a suite of advanced trading features and charting tools, Bitfinex provides access to peer-to-peer financing, an OTC market and financed trading for a wide selection of digital assets. Bitfinex’s strategy focuses on providing unparalleled support, tools, and innovation for experienced traders and liquidity providers around the world. Visit Bitfinex to learn more.
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Founded in 2017, Koine offers segregated, institutional custody and settlement of digital assets, providing a transformative security model, eliminating settlement and counterparty risks. For the first time Koine brings together the full suite of governance, compliance, risk management and audit of real-time asset trading to the digital ecosystem; its institutional clients can engage with digital assets whilst fully adhering to regulated market practices.
Koine’s executive team is made up of experienced banking, capital markets and payments professionals; industry stalwarts who understand the need for an interoperable custody and settlement platform that significantly reduces counterparty and settlement risks for trading.
The Koine state-of-the-art platform has been engineered to provide clients with the tools to manage their assets in a low latency, high-volume environment and benefit from increased security, agility and efficiency.
Koine delivers secure digital vaults to the same technical standard as the very best digital cold stores (FIPS 140-2/3) using its Digital Airlock™ technology. This new approach, complying with the EAL7+ standard, the highest possible, eliminates the need for hot wallets and human participation in post-trade processes whilst enabling clients to retain instant access to their assets.
Koine is authorised as an Electronic Money Institution (“EMI”) by the UK Financial Conduct Authority (“FCA”) for the issuance of electronic money with Firm Reference Number (FRN) 900934. This authorisation is distinct from its specific unregulated financial services offerings in respect of custody and settlement of digital assets and fiat money. It is seeking further appropriate regulatory licenses in trusted jurisdictions with the aim of providing its clientele with the most robustly regulated solution available for digital assets at a global level.
Its ground-up architecture, team, governance and systems make it the solution of choice for the professional trading community, delivering a truly institutional service to support all trading styles, from passive holding to high-frequency trading and offering real-time gross and net settlement options. This means digital trading venues and fund managers are turning to Koine to provide independent, institutional custody and settlement of digital assets.
Georgina Whittle, Associate Partner, Yellow Jersey PR
+44 (0)7835 770 967
Sarah Jehan, Senior Account Manager, Yellow Jersey PR
+44 (0)7930 043 188