Ethfinex Trustless Launches OTC Platform on Ethereum

Bitfinex’s subsidiary Ethfinex Trustless on Monday announced the launch of an on-chain over-the-counter (OTC) service for trading digital currencies.

The announcement detailed that there is no centralized order book or matching engine maintained by the platform, so trades will be executed on a peer-to-peer basis.

We’re proud to unveil an important development in our decentralised offering - @ethfinex Trustless OTC, a Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term enforced Over-the-Counter service. Get started today https://t.co/iIFtnzdg5a pic.twitter.com/pKSFeHaiuP

— Bitfinex (@bitfinex) June 3, 2019

Customers can trade any digital asset on the OTC platform. However, there is a restriction on the assets which are classified as “financial instrument.”

“Customers can trade any ERC20 token, and even specify custom Ethereum Ethereum Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language, Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language, Read this Term addresses for tokens which are not currently listed on any exchanges,” the announcement stated.

The platform is also boasting a low fee which is kept at 0.02 percent.

“Ethfinex Trustless OTC revolutionizes this model by using the blockchain to enforce the deal in an atomic transaction. This market first removes the need for escrow, and opens up OTC to anyone through significantly lower fees at 0.02% (vs 2-5% on more traditional OTC desks),” the press release added.

In addition, there is no need for submitting any know-your-customer (KYC) documents, meaning trades will be executed anonymously. This, however, barred traders based in the United States and other restricted jurisdictions from using the platform.

Damage control?

This development came at a time when Bitfinex is struggling with its reputation in the market after serious allegations by New York Attorney General’s office.

The cryptocurrency exchange recently launched an initial exchange offering (IEO) platform along with Ethfinex.

“Extending the capabilities of Ethfinex Trustless to include an OTC service is an important step in fulfilling the potential of decentralization in the cryptocurrency market,” Will Harborne, founder of Ethfinex Trustless, said. “It opens the doors to those previously prohibited by expensive OTC desks and provides security in blockchain enforced atomic deals. Customers no longer have to place trust in a third party, or take the risk of trades directly with the counterparty themselves.”