The digital asset trading platform Bitfinex has closed a partnership with Koine to provide the exchange’s customers institutional-grade digital asset custody services.
Koine made the announcement of its new partnership on Wednesday. The exchange is registered in the British Virgin Islands and aims to draw in new institutional investors through this new collaboration. Offering them the opportunity of storing their holdings safely. Koine’s CEO and chairman Hugh Hughes said this about the new agreement:
“Collaborating with Bitfinex to help bring new funds into their trading environment is an extremely important step in our evolution.
It is leading exchanges like these that will benefit from the shift to a more traditional market structure that will quickly lead to institutional capital participation and the rapid growth of trading from algorithmic funds.”
Koine Is FCA Regulated
London-based Koine has been regulated by the UK’s financial market authority known as the Financial Conduct Authority or in short, the FCA. It offers custody solutions and features a platform that provides both digital assets and fiat currencies segregated and settlement custody services.
In the Wednesday announcement was also detailed how Koine’s customers who have Bitfinex accounts are going to be able to obtain for their trades a line of credit on the exchange. Koine has in place a security model that replaces the hot wallet and cold storage model, which isn’t so secure seeing private keys still need to be eyed by staff.
It can be that Koine’s security model, together with its DvP settlement and the fiat custody services is a post-trade alternative to traditional capital markets.
Bitfinex Runs an Aggressive Expansion of Services
A little bit controversial, Bitfinex has an aggressive approach when it comes to the way it expands its services. Only last month, it launched a social networking platform for its traders to interact with each other.
Furthermore, it offers multiple staking services and up to 10% annual interest. After it added Tezos (XTZ) staking to its platform yesterday, it did it again today for Algorand (ALGO). Here’s what Bitfinex’s CTO, Paolo Ardoino, had to say about the new partnership:
“We have always focused on building a service fit for institutional trading.
In this collaboration with Koine for the delivery of custody post-trade infrastructure, we make another step on the path towards massive institutional participation in the crypto-trading market.”
In the meantime, Koine is closing other partnerships with many crypto players, as it aims to expand its custodial services. For example, it recently announced its collaboration with London-based digital asset OTC broker Digital RFQ.
Bitfinex has launched Institutional Grade Custody Solution, in collaboration with Koine, taking a step forward in supporting Institutional involvement in the crypto-trading market.
— Bitfinex (@bitfinex) May 13, 2020