Seed CX’s Crypto Custodian Subsidiary Zero Hash Launches Derivatives Settlements
Zero Hash, a subsidiary of Seed CX that focuses on cryptos, has announced that it is now supporting derivatives settlements. According to a report by CoinDesk, Zero Hash will now allow participants to settle bilateral derivatives transactions.
The new developments means that the platform will henceforth support the entire back office settlement functions for forwards. The announcement also indicated that the company will in the near future expand the services for options as well.
The launching of the new service offers collateral management for derivatives comprising options like ‘calculation of variation margin, initial margin as well as last settlement values which is the sending margin-call notification’.
Zero Hash was awarded a digital currency permit by the US Financial Crimes Enforcement Network back in July as well as a certificate as money transmitter which means that the firm is licensed to transmit funds for trading activity emanating from SCXM that is affiliated exchange.
Commenting on the new service, Zero Hash president, Brian Liston, stated that derivatives are rapidly growing in the digital assets space but there is a shortage of post-trade settlement utility and Zero Hash is seeking to fill the void.
With the launching of the service, the firm also enhanced flexibility since institutional traders will have a chance to customize the frequency of their forward contracts. Liston explained:
“We’re excited to service that demand with the launch of this new functionality. Zero Hash can now enable any trading platform or set of participants to trade and settle forwards in an efficient and secure manner.”
At the start of January this year, Seed CX introduced a virtual asset wallet platform that has on-chain settlement which was created in collaboration with Zero Hash. At the moment, the firm said that dispersing digital asset holdings in various unique wallets was imperative in reducing the risks associated with hacking to access pooled assets through a lone attack.
Cointelegraph reports various crypto exchange platforms are showing heightened interest in the growing derivatives market. At the start of this month, crypto exchange giant Binance entered the derivative market through the acquisition of JEX, a crypto asset trading firm which provides instant and derivative trading capabilities.