DeFinity partners with leading market infrastructure provider Cobalt to enable real-time FX clearing and dynamic credit management of digital asset trades
LONDON, 23 Dec 2021 / PRNewswire / – DeFinity, an ECN and DeFi institutional digital asset marketplace for fiat FX, cryptocurrencies, and central bank digital currencies, has partnered with Cobalt, a market infrastructure provider focused on reshaping the institutional forex and digital asset markets focused on real-time clearing, settlement and dynamic risk and credit management.
Manu Choudhary, CEO and Co-Founder of DeFinity, said: “Right now, digital assets are at the same level of sophistication as Fiat FX in the 1980s, with large bid / ask spreads, lack of standardization, insufficient segregation of duties, combined with inefficient and fragmented liquidity that make a far greater operational and systemic risk for participants. The partnership provides an enterprise digital asset solution to interact with traditional FX counterparties with clearly defined roles throughout the execution lifecycle – custody, execution, clearing and settlement. Our vision is to have DeFinity as a leader Establishing an electronic communications network (ECN) that provides market participants with sustainable and non-fragmented digital asset liquidity will be hugely improved through our partnership with Cobalt, not only because of their revolutionary clearing infrastructure, but also because of d he fact that some of the world’s largest banks and funds are already clients and investors, or credit brokerage functions are being kept at a distance with trusted counterparties, inspired by the best practices of the global foreign exchange markets. “
Darren Coote, CEO of Cobalt, added, “A significant number of financial institutions are eager to benefit from the expansion of cryptocurrency, but the lack of institutional-grade infrastructure limits investment opportunities. The predominant settlement process is extremely manual, prone to significant risk and insufficient for institutional trading. Cobalt is one of the few companies that provides critical market infrastructure for both digital assets and forex, and our partnership with DeFinity will help bring our post-trade solution to a wider audience of institutional traders. “
The combined technology of both companies will enable customers to use the processes of the capital markets to trade digital assets and create a secure technical infrastructure by maintaining the legal confirmation of every transaction. DeFinity will enable institutional investors to maintain independent pre-trading custody while providing a consolidated view of fiat and digital asset positions.
Michael Siwek, Chief Revenue Officer and Co-Founder of DeFinity Markets, concluded, “Institutional clients are excited to use our infrastructure to efficiently execute, record and execute trades using our proprietary blockchain to increase transparency and TCA capabilities so significantly strengthen investor confidence. “
DeFinity and Cobalt are also working together on other products and services with shared synergies in a number of innovation areas.
DeFinity is a financial technology company operated and owned by DMALINK and WeOwn. DeFinity is an ECN and DeFi institutional marketplace for digital assets for fiat forex, cryptocurrencies, and Central Bank (CBDC) digital currencies. In addition to the digital asset ECN, DeFinity is a Layer 2 protocol and a decentralized exchange solution with a focus on interoperability that uses existing blockchain frameworks such as WeOwn, Ethereum, Polkadot, Binance Smart Chain and Cardano. Leveraging the power of decentralization within a strong regulatory framework, the company is specifically geared towards supporting central bank digital currencies and decentralized financial services for FX clearing in the future.
For more information contact:
+44 (0) 20 3290 6580
Cobalt is driving the transformation of the currency and digital asset markets by building an institutional infrastructure platform suitable for today’s high-speed electronics markets.
By creating a single standardized version of every transaction and managing collateral and credit in real time, Cobalt enables all market participants to connect and automate their post-trade functions, including confirmations, trade netting, and collateral and credit management.
Cobalt’s secure Tier 1 platform with high availability and high throughput enables leading market participants to cut costs, reduce counterparty risk and increase trading to 24/7.
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