DeFinity Markets has secured approval from the Jersey Financial Services Commission (JFSC) to launch an investment-grade digital assets matching and settlement platform. According to the company's statement, this initiative leverages Jersey’s Virtual Asset Service Provider (VASP) framework to offer bank-backed credit intermediation to investment-grade clients.

Addressing Over-Collateralization

The platform reportedly aims to address key industry challenges, including counterparty risk and over-collateralization, making it a promising new player in the global financial landscape.

DeFinity Markets, a company focused on institutional digital asset trading, plans to expand its footprint in the financial world with the launch of its new platform in Jersey. The company mentioned that this step marks an important move for the business, which has been operational in the spot foreign exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term market since 2014.

Connected to some of the world’s most prominent banks, such as Nomura, Commerzbank, and Credit Agricole, DeFinity Markets has reportedly established a strong presence among global buy and sell-side clients.

We are beyond thrilled to announce that we have been granted VASP (Virtual Asset Service Provider) status by the Jersey Financial Services Commission, making us one of only a handful of businesses who have achieved this

This license will allow us to launch our full bank backed…

— DeFinity Markets (@definitynetwork) August 19, 2024

DeFinity Markets’ new platform introduces a challenger model where investment-grade clients can transact using bank-intermediated credit through the prime brokerage desk. This platform aims to eliminate the burden of over-collateralization, which has been a significant obstacle in digital asset trading.

Commenting on the new move, Michael Siwek, the Co-Founder and CRO of DeFinity Markets, said: “We are beyond thrilled to utilize the Jersey VASP framework to help banks, funds, and asset managers, as well as trust companies, buy, hold, and sell digital assets and fiat efficiently, eliminating the burden of over-collateralization.”

Expanding User Base

Jersey has become a hub Hub A hub as its name suggests describes the center of activity or a focal point. In terms of finance, the term hub can refer to Hub and Spoke Trading or a liquidity hub. However, the terms are not interchangeable, but they do overlap. Hub and Spoke trading refer to a network that posts bids and offers for an asset and therefore creates a real market. For example, Hub and Spoke trading allow traders to see the other submissions and offers from other traders on the platform. This is a popular method A hub as its name suggests describes the center of activity or a focal point. In terms of finance, the term hub can refer to Hub and Spoke Trading or a liquidity hub. However, the terms are not interchangeable, but they do overlap. Hub and Spoke trading refer to a network that posts bids and offers for an asset and therefore creates a real market. For example, Hub and Spoke trading allow traders to see the other submissions and offers from other traders on the platform. This is a popular method Read this Term for financial innovation, and DeFinity Markets’ decision to base its operations there underscores the island's growing reputation. The company has partnered with Carey Olsen Jersey for all legal matters, promising to establish a strong presence on the island.

Additionally, DeFinity Markets plans to aggressively expand its user base, attracting liquidity providers and clients interested in transacting with investment-grade counterparties. Last year, DeFinity Markets collaborated with One Trading, an EU-based crypto trading exchange, to broaden liquidity access for eligible institutions in the custody of institutional digital assets and fiat rails in the region.