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Fireblocks, X-Margin Partner to Offer Institutions Cross Margin Trading in Crypto Derivatives

The firms will leverage privacy enhancing zero-knowledge proof technology to enable institutional trading firms to cross margin and bilaterally trade derivatives from a single pool of collateral.

Обновлено 14 сент. 2021 г., 9:53 a.m. Опубликовано 8 сент. 2020 г., 1:02 p.m. Переведено ИИ
(Phongphan/Shutterstock)
(Phongphan/Shutterstock)

Digital asset infrastructure provider Fireblocks has teamed with X-Margin, a distributed clearing and settlement platform, in a bid to boost institutional offerings in the crypto derivatives market.

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  • Announced Tuesday, the firms will leverage privacy-enhancing zero-knowledge proof technology to enable institutional trading firms to cross-margin and bilaterally trade derivatives "without compromising security,” X-Margin CEO Darshan Vaidya said.
  • Trading bilateral derivatives using X-Margin’s system allows investors to benefit from trading at different venues from one pool of collateral.
  • This can potentially drive down costs by removing the need for a central middleman to verify positions.
  • It would further reduce the counterparty risk associated by holding funds on multiple exchanges to service derivatives contracts.
  • Fireblocks said the new partnership would enable the trading of digital asset derivatives using any form of collateral.
  • According to the announcement, JST Capital, global crypto firm XBTO and digital asset investment company LedgerPrime became the first customers to successfully trade using X-Margin’s distributed clearing network.
  • Fireblocks recently joined forces with blockchain analytics firm Elliptic to automate anti-money laundering compliance for their shared institutional clients.
  • In 2019, the firm raised $16 million in Series A funding from investors including Cyberstarts, Tenaya Capital, and Eight Roads, the proprietary investment arm of Fidelity International.

See also: Fireblocks Claims Exchange Program Enables Zero-Confirmation Crypto Deposits

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