A leading institutional digital asset ECN and DeFi marketplace for fiat FX, Cryptocurrencies and CBDCs, DeFinity announced its collaboration with Cobalt, a prominent market infrastructure provider, today.
The newly formed partnership will combine the technical capabilities of both companies to allow clients to leverage the processes of capital markets for digital asset trading. Moreover, DeFinity will allow institutional investors to retain independent custody pre-trade while providing a consolidated view of fiat and digital asset positions.
DeFinity is owned by DMALINK and WeOwn. In the latest press release, the financial technology firm added that it will enhance its partnership with Cobalt in the future to work on different products and services.
Manu Choudhary, CEO and Co-Founder of DeFinity, said: "Currently digital assets are at the identical point of evolution that Fiat FX was in the 1980s with large bid/offer spreads, an absence of standardization, insufficient segregation of duties, combined with inefficient and fragmented liquidity, which introduces far greater operational and systemic risk for participants. The partnership provides an enterprise solution for digital assets to interact with traditional FX counterparties with roles throughout the execution lifecycle, custody, execution, clearing, and settlement, clearly defined.”
Cryptocurrency Market
2021 witnessed a boom in cryptocurrency adoption. Both retail and institutional players entered the market to take advantage of growing adoption. With that, several new technologies like NFT’s and DeFi have gained immense popularity in the last few months.
Darren Coote, the CEO of Cobalt, added: "A significant number of financial institutions are eager to capitalize on the cryptocurrency expansion, but the lack of institutional-grade infrastructure limits investment opportunities. The prevailing settlement process is extremely manual, open to significant risks and not adequate for institutional trading. Cobalt is one of the only firms providing critical market infrastructure in both digital assets and FX, and our partnership with DeFinity will help to distribute our post-trade solution to a broader demographic of institutional traders."
