Enclave Markets launches confidential OTC trading platform for crypto
“On Enclave Cross, no one, not even a system administrator, knows the amount of open interest before trades are executed. At Enclave Markets, we give our users the ability to maximize these advantages – all within a fully compliant network.”
Enclave Markets has launched a novel service that allows participants to trade blocks of digital assets at the given market price without any information leakage or market impact.
The fully confidential OTC trading platform allows people to trade securely on a tamper proof and private marketplace with minimal market impact.
Enclave Cross facilitates block trades for approved participants
Going by the name of Enclave Cross, the service enables approved participants to execute block trades in a fully private and secure manner. The platform uses an advanced technology based on secure hardware that implements an enclave where code executes a smart contract free from interference.
Permissioned traders move their assets off-chain into the Secure Enclave technology which allows Enclave Cross to match traders directly with interested counterparties without exposing individual wallet addresses.
This helps to address the time mismatch that can result from a large trade which can lead to slippage, information leakage, and technical signals in the market. Enclave Cross currently supports trading of Avalanche, Ethereum, Bitcoin, and USDC with more digital assets to come.
Enclave allows institutions to take full advantage of what crypto has to offer
Enclave Cross has begun early-stage production testing with select institutional trading firms and prime brokers including Hidden Road Partners, LedgerPrime, Republic Crypto, Fir Tree Partners, Scrypt, FBG Capital, and Blizzard Fund, among others.
Currently, executing large orders on existing trading platforms can lead to material market impact due to these large trades being viewed as market momentum signals. When other market participants act on these signals, they can expose proprietary trading strategies and amplify price movements.
Even if no market participant acts on the trade, such large orders move the market and result in poor execution and adverse price action. Enclave Cross solves these issues by creating an OTC marketplace where approved institutional crypto traders can make block trades off-chain in a fully private and secure environment.
David Wells, CEO of Enclave Markets, commented, “The existing structure of both centralized and decentralized institutional-grade crypto exchanges don’t allow institutions to take full advantage of what crypto has to offer. One of the founding principles of crypto was the concept of leveling the playing field and creating trading markets that are optimized for fairness. On Enclave Cross, no one, not even a system administrator, knows the amount of open interest before trades are executed. At Enclave Markets, we give our users the ability to maximize these advantages – all within a fully compliant network.
“Since all assets and trades are being held and executed off-chain, others in the marketplace will see only when funds are withdrawn from the platform, reducing the impact of a time mismatch of buyers and sellers. We are excited to offer Enclave Cross as an institutional-grade, fully confidential trading platform and are looking forward to working with our users to build out a more fulsome suite of digital asset trading products.”