Fireblocks has announced the launch of its solution, Fireblocks Off Exchange, in an effort to eliminate exchange counterparty risk. Off Exchange enables trading firms and asset managers to trade on centralised exchanges from an on-chain Multi-Party Computation (MPC) shared wallet.
Fireblocks Off Exchange leverages MPC technology to enable traders to allocate and mirror assets directly to an exchange from a wallet they mutually control. This aims to protect their principal from hacks, bankruptcy, and fraud, while providing centralised exchanges with complete on-chain transparency that client accounts are fully collateralised.
Fireblocks Off Exchange takes a technology-first approach, aiming to allow traders to eliminate all forms of exchange counterparty risk by locking funds in secure MPC-based shared wallets.
Michael Shaulov, CEO of Fireblocks, says: “Fireblocks has partnered with the leading institutional firms and exchanges to develop Off Exchange, introducing a fundamental shift in how to simultaneously reduce risk and increase liquidity.”
Melvin Deng, CEO of QCP Capital, comments: “We are pleased to be among the first users of Fireblocks Off Exchange, which mitigates exchange exposure through direct custody. This is another pivotal step forward for the industry towards a secure and capital-efficient derivatives trading ecosystem.”
