Membrane Labs processes first crypto OTC derivatives trade

Membrane Labs, Inc. has launched a new derivatives management platform that streamlines the entire process of managing over-the-counter (OTC) derivatives transactions.

It includes the management of portfolio-level collateral and trade flow settlement. The platform aims to improve operational efficiency and risk management in the digital asset space for institutions, offering an enhanced OTC trading experience.

The first trade on this platform occurred earlier this week, involving XBTO and Arbelos Markets. Both companies are leaders in the industry and used Membrane’s comprehensive infrastructure for the transaction.

Membrane offers DMA, settlement, custom pairs and valuations, and collateral management

Carson Cook, CEO of Membrane, said: “Clients see Membrane’s platform as a game-changer in the digital asset space. Our technology streamlines derivatives trading and counterparty risk management on one platform. Collaborating with XBTO and Arbelos, we set new standards for institutional access to capital markets and portfolio management. Membrane’s platform enhances the safety and efficiency of the crypto OTC market.”

Mike Geraci, Membrane’s Head of Derivatives, said “Membrane is unlocking the true potential of the OTC derivatives market and solving the fragmented nature of the ecosystem by providing an integrated toolset for direct market access, settlement, custom pairs and valuations, and collateral management. With this infrastructure in place, we expect robust trading volumes and liquidity to gravitate to OTC markets.”

Membrane Labs, established in 2015, provides a software infrastructure for enterprise-grade capital market access. It includes a custody-agnostic settlement network for OTC spot trades, loans, derivatives, and associated collateral management with customizable report-creation capabilities.

The firm’s inaugural derivatives settlement was processed in November 2023 and involved notable trading entities QCP and Wakem Capital.

The leadership at Membrane Labs

At the helm is CEO and Founder, Carson Cook, whose journey in the digital asset ecosystem includes founding Tokemak, a DeFi liquidity solution. Cook’s expertise is further enriched by his experience in the fintech and financial services group at McKinsey & Co. His academic achievements, including a PhD in Physics and a Master’s in Electrical Engineering, add a unique dimension to his leadership.

Joining Cook in steering Membrane Labs is Will Galvin, the Chief Operating Officer (COO). Galvin’s career spans multiple industries, with significant experience in global economic development groups and co-founding a digital payments platform. His initial career as a trial attorney specializing in asylum, refugee, and criminal law, showcases the diverse skills and experiences he brings to Membrane Labs.

David Filbey, serving as the Chief Information Security Officer (CISO) and VP of Technology, brings over three decades of experience in information, cyber, and technology security. His career includes key positions at RECUR, the National Archives and Records Administration, and significant roles at Capital One and Oracle. His consulting work with Deloitte and PwC, focusing on financial services clients across the US and Europe, and his innovative contributions, evidenced by two patents in application security, highlight his expertise in the field.

Peter Fitzpatrick, the Head of Sales at Membrane Labs, has over a decade of experience in the financial industry. Prior to joining Membrane, he worked at Galaxy in the Trading Division and held various roles at Goldman Sachs, showcasing his extensive experience in equity derivatives sales-trading, financial analysis, and compliance.

Craig Birchall, leading the Lending & Settlement Solutions, previously worked in structured lending at J.P. Morgan and was involved in the launch of Galaxy’s Principal Lending franchise. His background in complex and exotic financing solutions for strategic clients across various business lines illustrates his proficiency in the financial sector.