back Back

DeFinity partners with Cobalt to enable FX clearing and credit management of digital assets

By Joy Dumasia

December 22, 2021

  • Asset Management
  • Cobalt
  • DeFinity
Share

DeFinity, an institutional digital asset ECN and DeFi marketplace for fiat FX, Cryptocurrencies and Central Bank Digital Currencies, partners with Cobalt, a market infrastructure provider focused on re-engineering the institutional FX and digital asset markets to facilitate the real-time clearing, settlement and dynamic risk and credit management.

The combined technology of both companies will enable clients to leverage the processes of capital markets for digital asset trading, creating a secure technical infrastructure by maintaining the legal confirmation of each transaction. DeFinity will allow institutional investors to retain independent custody pre-trade while providing a consolidated view of fiat and digital asset positions.

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 standardisation, 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. Our vision is to establish DeFinity as a leading electronic communication network (ECN) delivering sustainable and non-fragmented digital asset liquidity to market participants is hugely enhanced by our partnership with Cobalt, not only because of their revolutionary clearing infrastructure but due to the fact that some of the world’s largest banks and funds are already clients and investors. The asset custody or credit intermediation functions are kept at arms-length with trustworthy counterparties as inspired by the best practices of the global currency markets.”

Darren Coote, CEO of Cobalt, added: A significant number of financial institutions are eager to capitalise 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.”

Michael Siwek, Chief Revenue Officer and Co-Founder of DeFinity Markets, concluded: “Institutional clients are excited to use our infrastructure to transact, record and settle trades efficiently utilising our proprietary blockchain to increase transparency and TCA capabilities, therefore boosting investor confidence materially.”

Recently, IBS Intelligence reported that DeFinity, an institutional digital asset ECN and DeFi marketplace for fiat Foreign Exchange, Cryptocurrencies and central bank digital currencies, partners with cryptocurrency copy-trading platform Alpha Impact to distribute AI-powered market anomaly signals covering a dozen digital assets.

Previous Article

December 22, 2021

Emirates NBD offers Voice Banking with Alexa in UAE

Read More
Next Article

December 22, 2021

Mastercard and Schoolvoice partner to education sector payments across MENA

Read More








IBSi Daily News Analysis

cybersecurity

April 18, 2024

Asset Management

GCC banks bolster Cybersecurity measures to combat email fraud

Read More

IBSi FinTech Journal

  • Most trusted FinTech journal since 1991
  • Digital monthly issue
  • 60+ pages of research, analysis, interviews, opinions, and rankings
  • Global coverage
Subscribe Now

Other Related News

April 19, 2024

Wagestream raises $21.8m to expand financial well-being app

Read More

April 18, 2024

Alter Domus goes live on the Temenos Multifonds platform

Read More

April 15, 2024

9Basil Group announces acquisition of AlteriQ

Read More

Related Reports

Sales League Table Report 2023
Know More
Global Digital Banking Vendor & Landscape Report Q1 2024
Global Digital Banking Vendor & Landscape Report Q1 2024
Know More
Wealth Management & Private Banking Systems Report Q1 2024
Wealth Management & Private Banking Systems Report Q1 2024
Know More
IBSi Spectrum Report: Supply Chain Finance Platforms Q4 2023
Know More
Treasury & Capital Markets Systems Report Q1 2024
Know More

IBSi Sales League Table

The industry acknowledged barometer of global banking technology vendor performance!
Get your copy now!
close-link
Get your copy now! IBSi Sales League Table 2023