Bitfinex, a 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 that is specifically designed for institutional investors to mitigate counterparty, insolvency and credit risks of trading on exchanges.
Additionally, as part of the new 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.
According to Koine, its service, which provides settlement and segregated custody services for digital assets, along with digital assets to fiat, allows for an efficient, near real-time solution that obviates manual post-trade processes.
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.
Hugh Hughes, chair and CEO at 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.”
Paolo Ardoino, chief technology officer at Bitfinex, added: “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.”
