Bybit integrates Fireblocks Off Exchange to mitigate counterparty risk for institutional trades

on Jun 18, 2024
  • Bybit integrates Fireblocks' Off Exchange to enhance security for institutional trades.
  • The Off Exchange platform allows real-time, on-chain settlement, reducing counterparty risk.
  • This strategic move is designed to bolster asset protection and improve trading efficiency.

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Bybit, a leading global cryptocurrency exchange by volume, has announced its integration of Fireblocks’ Off Exchange solution to enhance security and mitigate counterparty risk for institutional trades.

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This strategic move is designed to bolster asset protection and improve trading efficiency for institutional clients.

Leveraging Fireblocks for enhanced security

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Bybit’s integration of Fireblocks’ Off Exchange solution marks a significant step in addressing the critical issue of counterparty risk.

The Off Exchange platform allows institutional traders to execute trades on centralized exchanges through an on-chain multiparty computation (MPC) shared wallet, thereby safeguarding their assets from potential threats such as hacks, bankruptcy, and fraud.

This innovative approach ensures that client accounts are fully collateralized with complete on-chain transparency.

Performance and technological advancements

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Over the past 90 days, the Fireblocks Network, which supports the Off Exchange platform, facilitated transactions worth over $200 billion between institutional traders and more than 30 connected exchanges.

By adopting this solution, Bybit aims to provide its clients with enhanced asset protection and security. The comprehensive MPC wallets used by Fireblocks’ Off Exchange lock and mirror assets to the connected exchange, significantly reducing the risk of unauthorized access or loss.

Real-time settlement and transparency

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One of the key benefits of the Fireblocks Off Exchange system is its ability to enable real-time and on-chain settlement.

This ensures that all transactions and asset movements are recorded on the blockchain, providing transparency and traceability for both Bybit and its institutional clients.

Increased liquidity and efficiency

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The integration also enhances liquidity by optimizing capital allocation and facilitating faster and more efficient trading activities. This allows clients to make better use of their resources and participate in a more liquid market environment.

By leveraging Fireblocks, Bybit underscores its commitment to providing a secure and efficient trading environment for its institutional clients.

What does Bybit management say?

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Eugene Cheung, Head of Institutions at Bybit, emphasized the company’s dedication to fostering trust in the crypto industry.

At Bybit, we are committed to fostering trust in the crypto industry and enhancing the security of institutional trades. The integration of Fireblocks Off Exchange offers enhanced on-chain transparency and a reliable trading environment, reinforcing trust and confidence for our customers. By leveraging Fireblocks, we underscore our unwavering commitment to institutional asset safety, which has always been a top priority for us.

Fireblocks’ approach

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Richard Astle, VP of Business Development at Fireblocks Network, highlighted the innovative nature of the Fireblocks platform.

Fireblocks has always taken an innovative, technology-first approach to solving some of the most pressing challenges in the digital assets industry. By using the Fireblocks Network, an institutional-grade digital asset transfer platform for rapid digital asset transactions and dynamic payment workflows, businesses gain direct connectivity to over 1,800 liquidity partners, trading venues, and counterparties and can streamline their trading operations with Network applications such as Off Exchange.

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