Bitfinex connects to UK crypto custodian Digivault

Rick Steves

“Custody and credit risk represent the key foundational requirements for institutional customers seeking exposure to Bitcoin and the emerging digital token economy. Digivault’s ExchangeConnect represents a comprehensive custody solution for institutional customers entering the space.”

Bitfinex has integrated Digivault ExchangeConnect in order to allow clients holding their assets within UK custodian Digivault to trade with the crypto trading platform.

Digivault is an FCA-registered subsidiary of EQONEX that provides custody services of crypto assets. The launch of Digivault ExchangeConnect aims to help address a number of issues institutional customers face when entering the digital token economy, including security and counterparty exposure created from needing to leave assets on the exchanges, capital inefficiencies with assets allocated across multiple exchanges, and the cost and time inefficiency in capital rebalancing efforts.

Digivault customers’ assets will be mirrored as account balance on Bitfinex

Digivault ExchangeConnect enables users to allocate and lock-up amounts of their custodied digital tokens for trading on a specified exchange. Digivault customers’ locked-up assets will be mirrored as available trading balances on Bitfinex in real-time while never leaving the safety of Digivault.

When using ExchangeConnect, Digivault clients can trade as normal using their Bitfinex trading account. Settlement occurs at the end of the day or intraday upon request. Digivault clients can unlock their assets from Bitfinex and withdraw them from Digivault.

The new solution solves a number of issues for clients, namely institutional participants, including:

  • security and counterparty exposure created from needing to leave assets on the exchanges,
  • capital inefficiencies with assets allocated across multiple exchanges,
  • and the cost and time inefficiency in capital rebalancing efforts.

Digivault ExchangeConnect addresses custody and credit risk

Paolo Ardoino, CTO at Bitfinex, said: “Custody and credit risk represent the key foundational requirements for institutional customers seeking exposure to Bitcoin and the emerging digital token economy. Digivault’s ExchangeConnect represents a comprehensive custody solution for institutional customers entering the space.”

Rob Cooper, CEO at Digivault, commented: “We built Digivault because we had a deep understanding of the unique security requirements needed for digital assets, as well as the stringent standards of institutional internal risk committees. Digivault ExchangeConnect is an important innovation for global investors and sophisticated traders who are looking to safeguard their assets without sacrificing efficiency when trading on exchanges.”

EQONEX, the parent company of Digivault, has been undergoing a major revamping effort in 2022 after having a hard time since late 2021, which resulted in the firing of the last chief executive, Richard Byworth, and plans for a merger or takeover.

As part of its business restructure, EQONEX has closed its exchange operation, which was struggling with a crowded crypto space as well as the crypto winter, and decided to focus its energies on the asset management and custody businesses, the later of which being Digivault.

 

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