Qredo spearheads trustless digital asset trading with atomic swaps

Qredo Atomic Swaps enable both individuals and institutions with delegated custodians to instantly trade peer-to-peer, without the need to trust a third party

Cross-chain liquidity protocol Qredo has implemented institutional-grade atomic swaps for Bitcoin and Ethereum, delivering instant, cross-chain, peer-to-peer trading without counterparty risk.

The Qredo Network unlocks digital asset liquidity, allowing traders to make simultaneous plays on different platforms from one pool of collateral, while assets remain secured on institutional-grade infrastructure.

The convergence of Digital Assets and FX

The digital asset market is rapidly undergoing a transformation, not unlike what we have seen in FX trading over the last 20 years. Decentralized pools of liquidity are being tied together to allow for better price discovery, and regulatory issues are being addressed by innovative solutions.

But unlike plain vanilla FX, there are a number of highly technical challenges of trading cryptocurrencies, which typically exist on separate blockchains. The FX Prime Brokerage model is therefore hard to replicate, and traders often need to divide liquidity and assets between separate blockchains and exchanges.

In the digital asset market, a pairs trade involving two digital assets can be accomplished with an Atomic Swap.

Qredo Atomic Swaps enable both individuals and institutions with delegated custodians to instantly trade peer-to-peer, without the need to trust a third party. Full control over assets is maintained at all times, eliminating the risk of loss presented by centralized exchanges.

Traders can easily generate a custom quote specifying size, price, and duration. This can then be shared anonymously as a URL, and executed instantly on the Qredo Network with no counterparty risk. Transactions don’t rely on confirmations on the underlying chain for settlement, so there are no delays waiting for coins to arrive and no network fees, which are the transactional costs native to each blockchain.

A blast from the future

In FX, we have seen the competition move from technology to pricing, with growing focus on spreads and liquidity.

In the digital asset market, where the technological pieces to allow for FX-style Prime Brokerage models are just starting to fall into place, Qredo is already taking an assertive stance with a very competitive pricing model.

Transaction fees are minimal, with 0.1 BPS fees shared between network stakeholders, and because prices are set in advance and transactions are instantaneous, trades are not subject to slippage, so you get exactly what you ordered. Governance procedures, including flexible custodian approvals, can be mapped to organizational requirements, and a clear audit record is maintained on-chain for easy regulatory compliance.

Asset managers, hedge funds, brokers and individuals can leverage this in-built governance, security and low fees to make over-the-counter trades without the risk of exchanges or third-party escrows.

“Until now, institutional-grade trustless trading has been a pipe dream, with slow transaction times and high mining and gas fees making it more popular for traders to surrender digital assets to centralized exchanges. Qredo makes trustless trading available to both individuals and institutions. Atomic swaps form the critical lynchpin of our network infrastructure, and BTC/ETH swaps are the first of a range of pairs we are supporting that will provide institutions with risk-free access to digital asset liquidity” said Anthony Foy CEO with regard to the new development.

Read this next

Digital Assets

Crypto.com secures preliminary approval to operate in Canada

Crypto.com, one of the longest-established crypto platforms, has become the first digital asset platform to sign a Pre-‘Registration Undertaking’ with the Ontario Securities Commission (OSC) in Canada.

Retail FX

CySEC hits IC Markets One with regulatory warning

The Cyprus Securities and Exchange Commission has once again stepped up its fight against unauthorized brokers.

Uncategorized

XTAGE now offers bitcoin and ether trading to 3.6M Brazilian investors

Brazilian financial services giant XP has officially launched its crypto trading platform XTAGE, which was built on major American stock exchange Nasdaq’s trading technology.

Institutional FX

FX volume drops 7pct at CLS Group in July 2022

FX settlement specialist CLS Group today reported that the executed volumes of currency trading on its platforms were notably down in July.

Digital Assets

Web3 startup PIP integrates with Binance ecosystem

Web3 payment provider PIP has announced integration with the Binance ecosystem, which allows the firm to vastly develop and propose needed products and improvements that are worthy of competing with others chains.

Industry News

Celsius $750m insurance claims are fraud, says lawyer seeking EU crypto superfund

“It is an intentional deception in aid of a billion-dollar securities offering.”

Institutional FX

DGCX brokers authorized to provide derivatives trading and clearing services

The DFM is looking to provide multiple asset classes such as; equities, ETFs, equities’ futures, crude oil futures, etc. to meet the growing demand from its diversified base of local and international investors.

Digital Assets

EQONEX leaves “crowded crypto exchange space” amid crypto winter

“The recent extreme market volatility and declining trading volumes have added to the headwinds being felt by exchange operators. We take a realistic view that our exchange will not move the needle for us financially over the near-to-medium term.”

Digital Assets

FTX and Paradigm partner for spreads trading: lower risk, lower fees

“This structured spread trading product is the first that will enable crypto investors to utilize cash and carry trades through FTX and Paradigm.”

<