Qredo spearheads trustless digital asset trading with atomic swaps - FinanceFeeds

Qredo spearheads trustless digital asset trading with atomic swaps

Andrew Saks

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.

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