FCA Registered Crypto Custodian digital vault, part of the EQONEX Group, has launched Digivault ExchangeConnect, a new service that allows clients to securely hold their assets within their registered custody account with Digivault FCA while trading them on an exchange. Digivault ExchangeConnect is now available on Bitfinex with more exchanges planned.
As an increasing number of institutions and investors add digital assets to their investment strategies, they continue to face challenges with trading on exchanges. These include security and counterparty exposure created by the need to leave assets on exchanges; capital inefficiencies with assets allocated across multiple exchanges; and cost and time inefficiency in capital rebalancing efforts.
Digivault ExchangeConnect solves these problems by allowing clients to allocate and lock amounts of their custodial digital assets to trade on a specific exchange. Your locked assets are reflected as available trading balances on the exchange in real time, but they never leave the security of Digivault.
By using ExchangeConnect, clients can trade normally using their Bitfinex trading account. Digivault does not engage in any exchange activities such as trading or order routing. Settlement occurs at the end of the day or intraday upon request.
Clients can unlock their Bitfinex assets and withdraw them from Digivault. When additional alternative exchanges become available, clients will also have the ability to quickly mirror their assets to other exchanges at a low cost.
Robert Cooper, CEO of Digivault, said: “We built Digivault because we had a deep understanding of the unique security requirements needed for digital assets, as well as the strict standards of institutional internal risk committees. Digivault ExchangeConnect is an important innovation for global investors and sophisticated traders looking to protect their assets without sacrificing efficiency when trading on exchanges.”
“It has been a great experience working with Bitfinex as our launch partner to refine the service before going to market.” Robert Cooper said.
“Custody and credit risk represent key fundamental requirements for institutional clients seeking exposure to Bitcoin and the emerging digital token economy.” said Paolo Ardoino, CTO of Bitfinex. “Digivault’s ExchangeConnect represents a comprehensive custody solution for institutional clients entering the space.”
Digivault ExchangeConnect Overview
- Digivault customers choose to use ExchangeConnect to connect to Bitfinex or their exchange of choice, when available
- The client allocates an amount of its escrowed assets to the block for use when trading on the exchange
- Locked assets are reflected in real time in your exchange account, but do not leave the security of Digivault
- The client can trade directly on the exchange. Digivault does not engage in any exchange activities such as trading or order routing.
- Settlement is activated at the end of the day or upon request. After settlement, the assets held in the client’s Digivault wallets match their trade balance reflected on the exchange.
Digivault provides digital asset custody that integrates physical and virtual security, providing institutions with tangible solutions in a rapidly changing world. We offer a powerful custodian that combines multiple layers of protection, eliminating the need to trust a single person or group of people. As part of a Nasdaq-listed company, we are accountable to the SEC, which means increased regulation. However, we remove the need for trust through our processes and technology, providing peace of mind for our clients.
Digivault is part of the EQONEX Group. EQONEX Limited is a technology-driven digital asset financial services group that provides clients with institutional-grade asset management, custody and infrastructure solutions. The Group’s digital asset ecosystem has been designed to adapt to the needs of institutions and individuals with the same degree of regulatory oversight and security that they are accustomed to in traditional financial markets.