October 7, 2022 - Crypto custodian Digivault, part of the EQONEX Group today launched Digivault ExchangeConnect, a new service that enables clients to safely hold their assets within their Digivault FCA-registered custody account whilst trading with them on an exchange. Digivault ExchangeConnect is now available on Bitfinex with more exchanges planned.
As institutions and investors add digital assets to their investment strategies, they may face challenges with trading on exchanges. These include security and counter-party exposure created from needing to leave assets on the exchanges; capital inefficiencies with assets allocated across multiple exchanges; and the cost and time inefficiency in capital rebalancing efforts.
Digivault ExchangeConnect aims to solve these issues by enabling customers to allocate and lock-up amounts of their custodied digital assets for trading on a specified exchange. Their locked-up assets are mirrored as available trading balances on the exchange in real-time but never leave the safety of Digivault.
When using ExchangeConnect, clients can trade normally using their Bitfinex trading account. Digivault is not involved in any exchange activities such as trading or order routing. Settlement occurs at the end of the day or intraday upon request.
Clients can unlock their assets from Bitfinex and withdraw them from Digivault. When additional, alternative exchanges are available, clients will also have the ability to quickly mirror their assets onto other exchanges at a low-cost.
Robert Cooper, Digivault CEO said, "We built Digivault because we had a deep 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."
"It's been a great experience working with Bitfinex as our launch partner to perfect the service before bringing it to market," said Robert Cooper.
"Custody and credit risk represent the key foundational requirements for institutional customers seeking exposure to Bitcoin and the emerging digital token economy," said Paolo Ardoino, CTO at Bitfinex. "Digivault's ExchangeConnect represents a comprehensive custody solution for institutional customers entering the space."
Digivault ExchangeConnect Overview
• Digivault customers opt-in to use ExchangeConnect to connect to Bitfinex or their exchange of choice, when available
• Client allocates an amount of their custodied assets for lock-up for use when trading on exchange
• Locked-up assets are mirrored in real-time in their exchange account but do not leave the safety and security of Digivault
• Client can trade directly on exchange. Digivault is not involved in any exchange activities, such as trading or order routing.
• Settlement is activated at the end of the day or upon request. Following settlement, assets held within client's Digivault wallets match their mirrored trading balance on exchange.
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