Crypto exchange software provider AlphaPoint has announced its launch of a Blockchain technology solution, StreamCore, geared toward financial institutions.
The solution is designed to be flexible for the exchange of multiple assets, and configurable to various levels of permissioning. Whereas Bitcoin's blockchain network is open to any participant and is secured via Bitcoin miners, permissioned systems are controlled by their respective institutions. Variants of permissioned systems are being explored by many financial institutions and startups, as they may be more conducive for regulated trading environments.
AlphaPoint CEO Joe Ventura explained to Finance Magnates that the solution can be plugged into Bitcoin for those requiring such flexibility. "StreamCore will be able to operate as a standalone platform, however operators can also link it to other blockchains, such as bitcoin, for instance, in order to enhance auditability," he said.
Bitcoin's blockchain technology, and others inspired by it, are envisioned to potentially revolutionize the way assets are traded and settled. Dozens of banks are now exploring the technology, which can potentially be adapted toward the transfer of stocks, fiat currencies and derivatives. Settlement would occur in real-time, and the record of transaction would be immutable, validated by the network's distributed participants.
Joining the Blockchain Race
The announcement comes as part of the latest trend of startups traditionally engaged in developing the bitcoin-as-a-currency economy jumping into the blockchain tech space. Among exchanges, itBit, the first bitcoin exchange to be granted a regulatory charter, got into the blockchain game with its 'BankChain' solution for Wall Street. It unveiled its vision at a secretive and exclusive event in New York in July.
Bitcoin mining giant BitFury is also apparently entering the blockchain race. It too hosted a secret blockchain summit, this one in the United Arab Emirates just over two weeks ago.
Asked if, considering the launch, the startup still values bitcoin for its prospective capabilities as a currency, Ventura explained:
"We absolutely believe bitcoin will continue to grow as a currency - the first and by far the most active blockchain application at the moment is bitcoin the currency, with some $2.1 billion having moved across the network in the last 30 days. We also believe that blockchain technologies will transform financial applications beyond currency exchange, and that these will continue to gain traction."
Indeed, Ventura indicated that the solution would integrate with AlphaPoint's existing infrastructure including asset exchange, Payments , real-time accounting, and multi-asset risk management.
"In effect, the solution provides exchange operators a built-in, auditable record of exchange actions, which can be permissioned, apportioned, and selectively shared with stakeholders and partners alike as needed (e.g. auditors, clearinghouses, regulators, market makers, banks) - both for auditing purposes, and for strategic partnership integrations," Ventura said.
The trading technology provider, which secured $1.35 million in funding just over one year ago, powers bitcoin exchanges big and small. Around the time of the funding, it partnered with Bitfinex- currently the world's second largest USD-based trading venue, based on 30-day volume- to revamp its trading engine.
With its latest venture, it is joining an increasingly competitive race to grab the attention of financial institutions looking to enhance their offerings with the latest technology. Larger banks have been developing their own in-house blockchains, and a sizeable proportion of them are joining industry-wide consortiums to help standardize it. At the same time, numerous crypto startups have been leveraging their blockchain expertise to develop institutional solutions.
