Crypto custodian Digivault has launched Digivault ExchangeConnect, which allows users to hold assets in a Digivault custody account whilst trading them on an exchange.
This follows industry concern around trading digital assets on exchanges. Security and counterparty exposure from leaving assets on exchanges are notable risks, and capital inefficiencies can result from asset allocation across multiple exchanges. This can cost investors time and money as they try to rebalance this capital.
Through ExchangeConnect, assets can be mirrored to appear as available trading balances on exchanges, while remaining secure in Digivault. Clients will be able to trade normally, with Digivault used as part of the daily or intradaily settlement process.
Bitfinex is the first exchange that the solution can be used on. As more are added, users will be able to mirror their assets onto other exchanges at a low cost.
Robert Cooper, CEO of Digivault, says: “We built Digivault because we had an understanding of the unique security requirements needed for digital assets, as well as the stringent standards of institutional internal risk committees. Digivault ExchangeConnect is an important innovation for global investors and sophisticated traders who are looking to safeguard their assets without sacrificing efficiency when trading on exchanges.”
Paolo Ardoino, chief technology officer at Bitfinex, adds: “Custody and credit risk represent the key foundational requirements for institutional customers seeking exposure to Bitcoin and the emerging digital token economy. Digivault’s ExchangeConnect represents a comprehensive custody solution for institutional customers entering the space.”
