Cryptocurrency exchange Bitfinex has partnered with KoineLaunched a London-based digital asset custody platform institutional custody and post-trade services.
Bitifinex announced this on May 13 Koine would offer a range of services that could help professional traders to avoid the risks associated with exchanging cryptocurrencies.
Bitfinex, which provides some of its services to professional clients via the algorithmic tradingclaims that the new range of services This will help promote institutional participation in crypto markets.
Koine’s model is neither “hot” nor “cold”
Talk to Cointelegraph Phil Mochan, Founder and head of strategy and corporate development at Koine, explained how his security model works for the safe storage of encrypted assets.
Instead of following established procedures for storing cryptocurrencies in “hot” or “cold”, Your system uses three separate technology parts. called “digital locks” because they work similarly to physical locks:
“Digital assets end up in an external lock, which we traditionally call a” hot wallet “, but which we call a” transit account “because the funds are only kept there temporarily before they pass to the second lock. They are stored in a separate digital book dematerialized and then transferred to a third castle, which represents the vault of the dormant assets. “
Noting that the outer lock still vulnerable to attackhow about a hot wallet Mochan conventionally emphasized that the difference lies in the fact that “The average balance held there is zeroand we are protected when it is not. “
Also The entire process appears to take place in a “sub-millisecond” time frame and it mainly depends on the hardware and not the software.
Blockchain’s “only source of truth” eliminates post-processing
Apart from this safe custody approach Koine’s technology is almost completely automatedwithout relying on human intervention, and is said to be able to process more than 200,000 transactions per second.
Koine’s post-trading services are designed to eliminate the need for manual processes by removing blockchain assets from the market cycle through a dematerialization process.
Traditional markets – like stocks and bonds – often They also dematerialize assetsHe noted, but they continue to use a multi-tier business model that requires intensive processing.
In contrast, Koine’s Payment Delivery Mechanism (DvP) uses a distributed record as the only “source of truth”, the Mochin compared to the model of conventional securities warehouses but without its multilevel custody structures.
In the end Koine’s service guarantees continued legal ownership of all digital assets and Fiat funds (digitized) by keeping all assets involved in the transactions within a separate ownership model:
“If a client wants to exchange crypto, Koine backs up the guarantee on every side of the process […] before the transaction is completed. This guarantee insurance takes less than a millisecond. After the operation, Koine will perform DvP within sub-milliseconds after receiving confirmation of the exchange. “
Speaking to Cointelegraph, a Bitfinex representative revealed this Koine and Bitfinex are also building an integration “It would enable Koine customers, who are also Bitfinex customers, to get a line of credit at Bitfinex with the tokens they have at Koine.”
New offers and old controversies
As reported, the Bitfinex derivatives platform has recently launched a new product for eternal exchange This enables traders to speculate with the Bitcoin (BTC) domain.
The exchange also launched its own social network, “Bitfinex Pulse” last month, to promote communication between traders.
In view of the increasing spread of these new offers and services, Bitfinex’s parent company, iFinex, was informed in early 2020 of a class action lawsuit for alleged market manipulation.