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DeFinity Markets, a full-stack institutional digital asset trading platform, has received approval from the Jersey Financial Services Commission to launch its investment-grade digital assets matching and settlement platform. The platform is based on a Tier 1 bank-backed credit intermediation model designed to offer investment-grade credit to its clients.
The Jersey subsidiary of DeFinity Markets, part of its London-based parent group of companies, has been operational in the local foreign exchange market since 2014. The platform is connected to several prominent banks, including Nomura, Commerzbank, Credit Agricole, Danske Bank, and a total of 11 banks, serving buy and sell side clients globally.
Manu Choudhary, co-founder of DeFinity Markets, stated: "We are excited to expand our operations into the FI-backed institutional digital asset market. Jersey's robust VASP framework and commitment to financial innovation make it the ideal location for our platform."
The platform's model will allow investment-grade buy and sell-side clients to transact with each other using bank-intermediated credit via the prime brokerage desk.
Michael Siwek, co-founder and CFO, DeFinity Markets, also commented: "We are beyond thrilled to utilise the Jersey VASP framework to help banks, funds and asset managers, as well as trust companies to buy, hold and sell digital assets and fiat, efficiently, eliminating the burden of over-collateralisation, ultimately easing counterparty risk and establishing a new and improved trading infrastructure for FIs globally wishing to trade digital assets in their own name or on behalf of clients."
DeFinity Markets has chosen to work with local law firm Carey Olsen Jersey in all legal matters and has a strong partner on its side as it expands its presence on-island.
Chris Griffin, Partner at Carey Olsen Jersey, commented: "The launch of DeFinity Market's platform is a great result for Jersey and the perfect use case for the JFSC's now well-established VASP regime."
The firm plans to expand its user base aggressively in the coming months, attracting UK and clients who wish to transact with investment-grade counterparties.
Greg Myers, Senior Board Advisor at DeFinity Markets, said: "We believe that Jersey is at the forefront of digital asset innovation, and we are excited to contribute to the island's growing reputation as a global financial centre of excellence."
DeFinity Markets® is the Institutional Standard in Digital Assets Trading and fiat rails. DeFinity is built on institutional-grade technology offering unprecedented digital assets market access to globally leading Financial Institutions seeking to diversify their portfolio.
The DeFinity management team has applied decades of knowledge of traditional financial markets to create the DeFinity ECN with direct market access. Platform participants can transact fiat FX trades with the digital asset’s component completed on the DeFinity ECN. The ECN is custody-agnostic and provides FIX API access, a standardized rulebook powered by an embedded AML/KYC framework. We aggregate quotes from market makers on which qualified clients can transact digital assets. DeFinity offers access to liquidity across all major digital assets, including stable coins. The DeFinity ECN supports fiat currencies including GBP, EUR, USD crosses supported by an integrated fiat on and off-ramp gateway.
