KEY POINTS
- Sophisticated investors can leverage Bitfinex's deep liquidity while maintaining their assets in a regulated space
- Institutions can enjoy uninterrupted trading on Bitfinex without constant on-chain asset transfers
- The collaboration emphasizes Bitfinex's commitment to expanding secure trading options for customers: Paolo Ardoino
In the vast realm of cryptocurrencies where security is a fundamental aspect of institutional trading, leading digital asset trading platform Bitfinex today announced a collaboration to explore a strategic integration with Komainu Connect, a regulated crypto custodian.
The parties signed a Memorandum of Understanding (MoU) for the collaboration, which will be powered by Ledger Enterprise's off-exchange trading and settlement technology, Ledger Tradelink™. This technology enables institutional customers to trade through the Bitfinex platform.
Secure and uninterrupted trading
The integration is expected to provide institutions and sophisticated investors with a means to leverage Bitfinex's deep liquidity and advanced trading features while maintaining their assets' security in a separate, regulated environment.
Through the integration, Komainu Connect can provide institutional traders with access to Bitfinex, one of the world's most liquid markets for crypto assets. Many institutions seek safe and secure channels for trading, and the Bitfinex-Komainu partnership ensures that traders can keep their assets segregated with a regulated custodian.
💧 Whale Tip: Ensure there is enough liquidity before making large trades. High liquidity means less slippage and better execution prices!
— Bitfinex (@bitfinex) August 13, 2024
"As one of the longest-standing cryptocurrency exchanges, Bitfinex has deep liquidity." @Forbeshttps://t.co/2CENCsmflU pic.twitter.com/kUeZwfqLLS
A key benefit for institutions is the ability to enjoy uninterrupted trading on Bitfinex without frequent on-chain asset transfers. More importantly, institutional traders can rest assured that their assets are safe under Komainu Connect's custodian services.
How it works
Traders who have assets on Komainu Connect and a verified account on Bitfinex will be able to allocate a portion of their custody-held assets for trading, initiating a lock at Komainu Connect. The custodian will then notify Bitfinex through an API connection, and upon approval, Bitfinex will grant the trader a balance equivalent to the locked amount, enabling seamless trading with the designated assets.
A proven system
Bitfinex's Komainu Connect integration is the latest remote custodian solution the state-of-the-art crypto platform offers. It has had similar arrangements with other custodian partners that have proven popular among institutional clients.
"Our collaboration with Komainu Connect reflects our commitment to expanding secure trading options for our customers and provides an additional layer of security for institutional investors by allowing them to leverage Komainu's regulated custody solution while still accessing Bitfinex's robust trading environment," Bitfinex CTO Paolo Ardoino said in a statement to International Business Times.
"We are thrilled to welcome Bitfinex to our Komainu Connect platform. This collaboration expands our ecosystem of trusted exchanges, further enhancing liquidity across our growing network of trading venues from centralized exchanges, OTC desks, market makers and prime brokers," said Paul Frost-Smith, co-CEO at Komainu.
Sebastien Badault, the executive VP of Enterprise Revenue at Ledger, also expressed delight over the partnership. "Our collaboration with Komainu and Bitfinex heralds a new era for capital markets through the launch of a new open protocol standard for off-exchange trading. We've long believed that establishing a unified standard for off-exchange collateral pledging and settlement among custodians, exchanges, and liquidity providers is crucial for scaling the institutional digital asset market," he said.
A compliant path in crypto custody
Regulations continue to evolve as the digital assets sector blooms, and compliance is at the center of it all. Crypto exchanges have a crucial responsibility to safeguard the assets of customers who trust their services. The Bitfinex-Komainu collaboration highlights the exchange's proactive approach to compliance, moving forward the shared goal of ensuring that customers can trust in a compliant future in crypto.
