FXCH and 24Exchange partner on crypto trade settlement

abdelaziz Fathi

On its way to bringing a much needed institutional-grade trade infrastructure to the digital asset space, FXCH (Hong Kong) and 24Exchange (Bermuda) are teaming up to offer a clearing and settlement option to crypto cash markets.

The clearing house said the service is available to all 24Exchange members, providing “the first clear demarcation” between trade execution, margin/risk management and settlement for the crypto asset class. It added that the cryptographic ‘proof of ownership’ is a golden opportunity, even for traditional finance, to move away from the ‘blind trust’ that people place in banks’ balance sheets.

Unlike other established clearing houses, FXCH has turned to blockchain technology to not only make the process more efficient, but more transparent too.

Paired with 24Exchange’s trading platform liquidity and fast matching technology, the alliance  allows market participants to exchange their exposure at a low cost and manage their settlement with the highest level of funds and operational safety.

The collaboration allows 24Exchange’s users to access x3 leverage and real time cross-asset and cross-venue netting of positions, without the requirement to transfer assets prior to settlement. This mechanism supposedly reduces both systemic risks and cost of capital.

24 Exchange expands business partners

Dmitri Galinov, 24 Exchange CEO and Founder, said, “We are pleased to join with The Foreign Exchange Clearing House to help our institutional clients manage settlements of their cryptocurrency trades on our robust platform. Through this partnership, sophisticated institutional market participants around the world who trade crypto assets on 24 Exchange can access fast, low-cost clearing and settlements with the highest levels of confidence, security and efficiency.”

In March, 24 Exchange marked a major milestone in its digital assets business with the first cryptocurrency NDF trades completed on its platform, involving ED&F Man Capital Markets, XBTO and QCP.

The Hamilton, Bermuda-based company announced in September the execution of a physical cryptocurrency trade, being the first of its kind on its institutional-grade platform. It also onboarded more liquidity providers streaming NDFs across all supported pairs, regardless of the underlying tenor, including those with non-standard maturities.

The regulated OTC platform expects to see continued interest across its crypto products as its spot and non-deliverable forward infrastructure develops throughout the course of 2022.

Operated by 24 Exchange Bermuda Ltd, Dmitri Galinov’s brainchild is a multi-asset class platform that combines both cryptocurrency and FX trading on a single technology. In addition, the company is looking to expand its product offering alongside partners including Standard Chartered.

The three-year-old startup is also planning to launch a 27/7 stock exchange in the US that will enable retail investors to trade with a minimum increment of one one-thousandth of a share.

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