Bitfinex partners with Koine to launch an institutional-grade custody solution

Bitfinex exchange has joined hands with Koine, a London-based crypto custody provider to launch an institutionally-oriented post-trade service. A press release unveiled this news on May 13, noting that this service would help investors minimize counterparty, credit and insolvency risks while trading. On top of this, it would let them use private keys to clear and settle transfers.

According to the press release shared with Invezz, this partnership is set to bring a wave of institutional investors to Bitfinex by promising safe storage for their assets. For Koine’s customers that already have Bitfinex accounts, this collaboration will grant them access to a line of credit for their trades of the crypto exchange. The publication further cited that fund managers would have a separate custody solution while maintaining continuous ownership during the trade lifecycle.

Commenting on this partnership, Koine’s chairman, and CEO, Hugh Hughes said,

“Collaborating with Bitfinex to help bring new funds into their trading environment is an extremely important step in our evolution. It is leading exchanges like these that will benefit from the shift to a more traditional market structure that will quickly lead to institutional capital participation and the rapid growth of trading from algorithmic funds.”

Forming an impregnable custody solution

By combining Bitfinex’s algorithmic trading solution and Koine’s real-time settlements, investors will be in a position to boost capital efficiency. This, in turn, would lead to massive growth in trading volumes. The icing on the cake is that investor funds will be protected by Koine’s security model, which launches Digital Airclocks to replace the cold and hot wallet model. Through Koine’s model, investors will be guaranteed the safety of their private keys. By integrating this security model into fiat custody and DvP settlement, Koine provides a suitable post-trade solution for traditional capital markets.

Paolo Ardoino, Bitfinex’s CTO said,

“We have always focused on building a service fit for institutional trading. In this collaboration with Koine for the delivery of custody post-trade infrastructure, we make another step on the path towards massive institutional participation in the crypto-trading market.”

Bitfinex’s dedication to expanding its services

This news comes after Bitfinex rolled out Bitfinex Pulse, a social networking platform on April 27. Per the exchange, this platform would help customers interact with one another to get a trading edge. It would reportedly let them share news, trends, and developments in the crypto market. Verified Bitfinex users will be able to share their thoughts on crypto, offering them the option of choosing whether they want their pulses (posts) to be private or public.

Do you think Bitfinex’s partnership with Koine will help bring the long-awaited wave of institutional investors into the crypto market? Share your thoughts in the comment section below.