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

Industry News

SEC Chair Gensler pitches for regulation of crypto exchanges; will Ripple benefit?

In what can be perceived to be a big boost for the crypto community, Gary Gensler, the newly appointed chairman of the Securities and Exchange Commission (SEC) has asked the Congress to look into crypto regulation.

Industry News

Baton Systems integrates with LCH for automation of collateral workflow

Baton Systems, a provider of post-trade solutions for financial markets, has announced its integration with LCH, a leading clearing house, for automating the end-to-end collateral workflow for participants in the derivatives markets.

Industry News

CBOE Expands Its European Team with Hiring of Senior VP

CBOE Europe, a pan-European exchange operator and which is a part of CBOE Group based in the US, has expanded its European team with the hiring of Natan Tiefenbrun as its Senior Vice President, Head of European Equities.

Retail FX

London C-level executive market on fire: Tickmill, you’re up

Mukid Chowdhury is now the face of Trading 212. This, however, has left a newly vacant seat. Now, it’s Tickmill’s turn to fight for a Chief Financial Officer. The C-level executive market in London is on fire at the moment.

Industry News

Sapien Capital: FCA fines £170k for allowing Solo Group’s money laundering

The role of Sapien Capital is that it executed purported OTC equity trades to the value of approximately £2.5 billion in Danish equities and £3.8 billion in Belgian equities.

Industry News

MAS invites all fintechs to apply for green tech accelerator

Fintechs should aim to solve at least one of the three key challenges proposed by MAS: (i) Mobilising Capital; (ii) Monitoring Commitment; and (iii) Measuring Impact.

Technology

LSEG tests DCM digitization platform developed with Nivaura

This issuance marks an important milestone in capital markets automation and digitization and demonstrates the potential of such platforms to improve current capital market workflows.

Industry News

Archegos Capital prepares for insolvency proceedings

Archegos Capital, the troubled capital management firm, is preparing for insolvency proceedings as banks that handled its funds are trying to recoup their losses from it.

Inside View

FinanceFeeds announces interview and media opportunities at IFX EXPO

After a tough year for much of the world and the FX industry, Ultimate Fintech has announced the first in-person B2B event of the year – IFX EXPO Dubai.