Partnership allows financial institutions to trade large volumes of digital assets at lower costs and less risk while providing exchanges new clearing and settlement options
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NextPrime and Crown Financial Services Partner to Enable Financial Institutions to Trade Digital Assets With Capital Efficiency
Press November 13, 2019
Institutional penetration into digital asset markets has been lacklustre at best. This reticence comes with good reason. As it stands now, trading significant volumes of digital assets is extremely expensive, operationally risky and produces major capital inefficiencies.
Over the weekend news from Coindesk of Irish cryptocurrency exchange Bitsane (website offline) apparently pulling a runner with users’ funds is just the latest in a long line of examples illustrating the need for evolution in digital assest market structure. This incident comes on the heels of earlier reporting by Coindesk of Polish crypto exchange Coinroom doing the same thing. SIPC and FDIC protections in the US, the UK FSCS, various compensation schemes in Germany and throughout the EU and elsewhere protect investor funds and assets when an institution fails in its custody duty to its customers. Unfortunately, with current market structure, similar protections do not exist for the crypto buy-side.
The market structure for digital assets is unique. In addition to matching trades, exchanges act as depository institutions for trading collateral. Professional traders and institutions incur costs, operational risk and capital inefficiencies because collateral is fragmented across many exchanges.
Press May 01, 2019
SINGAPORE, May 1, 2019 - NextPrime emerged from stealth mode today and announced the launch of its prime-brokerage services platform for institutional crypto traders. The first service on offering is a fiat-currency custody solution that allocates buying power across multiple exchanges from a single pool of trading capital. Funds are held in fully-regulated, third-party custody accounts and cash settled multuple times daily.