Bitfinex has announced the launch of a new custody solution for institutional investors in association with Koine.
Koine is a company licensed by the Financial Conduct Authority (FCA) from United Kingdom, and its custody service is specifically designed for large institutional investors.
It provides investors with the ability to mitigate counterparty, insolvency and credit risks, as well as reduce the need to use private keys for clearing and settlement.
Going forward, Koine customers who also have a Bitfinex account will be able to obtain a line of credit on the trading platform using bitcoin or other cryptocurrencies on Koine. The service offers a near real-time solution that eliminates manual post-trade processes.
Bitfinex aims to increasingly establish itself as a cryptocurrency exchange offering a high-level trading infrastructure for the capital market, with cutting-edge solutions like algorithmic trading that can dramatically increase capital efficiency and trade volumes through trading. between centers and real-time settlement.
Partnering with Koine will provide fund managers with a custody solution separate from the exchange to time that will keep full ownership during the negotiation.
Koine's security model is based on Digital AirlocksTM, which replaces the model based on cold storage and hot wallet, and DvP clearance.
Koine President and CEO, Hugh hughes, said:
“Collaborating with Bitfinex to help attract new funds to your business environment is an extremely important step in our evolution. It is the 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 algorithmic fund operations. ”
Bitfinex CTO, Paolo Ardoinohe commented:
“We have always focused on creating a suitable service for institutional commerce. In this collaboration with Koine for the delivery of the post-trade custody infrastructure, we take another step on the road to massive institutional participation in the crypto market. ”
The process of merging crypto markets within the global financial system has been going on for some time, and is now unstoppable, mainly due to the growing interest of the world's leading financial players in these new assets with enormous potential.
Until now, it has probably been precisely the lack of adequate infrastructure that guarantees a high level of security for those who have enormous capital to invest in these new markets, which has restricted their access. However, this limit is about to be exceeded, and it may be a short time before traditional finance enters this market en masse.