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As market participants become more heterogeneous and sophisticated with the strategies they deploy, digital asset service providers will evolve in line to offer a comprehensive client experience. The stack of relevant prime services may differ between traditional and digital asset markets. While digital asset prime may not settle on the identical solutions provided by traditional prime, it will be rooted in an identical purpose – a master cryptocurrency prime brokerage relationship that facilitates access to all relevant markets and service providers. As institutional interest in the digital asset market grows, so is the demand for more robust financial services.
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The emerging digital asset industry is looking to adopt the prime model to service a new wave of institutional clients. While digital asset prime may not settle on identical solutions provided by traditional prime, it https://www.xcritical.com/ will be rooted in an identical purpose – a master relationship that facilitates access to all relevant products, markets, and service providers. Led by Head of Americas Fernando Martinez, the Americas unit facilitates OSL’s market-leading prime brokerage offering, including electronic and OTC execution and coin borrowing and lending, into OSL’s deep pools of digital asset liquidity.
Hidden Road Launches Industry-First OTC Prime Brokerage for Digital Assets
ST. JULIANS, Malta, Feb. 22, 2022 /PRNewswire/ — BEQUANT, the digital asset prime brokerage and exchange, is pleased to announce that Kraken has been integrated on its prime brokerage platform, BEQUANT Pro, and added to the growing list of exchanges that BEQUANT offers to its clients. The company offers OTC, iRFQ and electronic trading services giving traders access to the world’s deepest liquidity pools, as well as secure and insured wallets to ensure the safekeeping of digital assets with timely transaction settlement. The company offers OTC, iRFQ and electronic trading services giving traders access to the world’s deepest liquidity pools, as well as secure and insured wallets to ensure the safekeeping of digital assets with timely transaction settlement.
Financial Services & Investing Overview
About Nexo PrimeNexo Prime is the proprietary prime brokerage platform of Nexo, the world’s leading digital assets institution. Nexo Prime gives institutional, corporate, and high-net worth investors all the tools necessary to trade, borrow, lend, and store their digital assets in a single product. Nexo Prime is created for a market that never sleeps and offers best-in-class, around-the-clock service to clients across the globe.
To view your holdings in one of our investment products, please use the access details provided to you by your administrator. This year we recognize over 700 brands across 163 categories that have gone the extra mile to deliver exceptional customer service experiences. When you first log in, click on Ask for Apps to request access to the Virtual Self-Certification application, for the company(ies) you will be filing for. Prospective applicants who have questions about the application process can send their questions to the DFS Virtual Currency Unit staff, at [email protected]. If it appears that an applicant would benefit from a more interactive dialogue, DFS staff may recommend a pre-application call or meeting (virtual or in person), at the appropriate time. Each company holding a BitLicense that wishes to manage its license on NMLS must create a company record in the system (see above).
It would be a stretch to say a full-service prime broker with all the products and attributes of bulge bracket prime services teams in traditional markets exists in digital asset markets today. Rather, they are akin to boutique prime brokers that specialize in one or two specific prime services. However, service providers are recognizing the gap they can fill by bundling multiple products and services together.
We focus on delivering unsurpassed personal service to our customers while meeting the unique requirements of major institutions and high-net-worth individuals. Clients benefit by working with our experienced and highly professional staff and the strong relationships which OBEX has formed with its various clearing firms. OSL’s over-the-counter (OTC) and electronic RFQ/API offer access to unparalleled market liquidity with complete privacy, capital efficiency and guaranteed price quotes.
- For more information about applying for a limited purpose trust charter, visit Commercial Banks & Trusts.
- Listeners will gain valuable insights into the future of decentralized finance (De-Fi) for institutional players and how the increased accessibility offered by prime brokerage services could drive overall market growth.
- In June of 2015, DFS issued virtual currency regulation 23 NYCRR Part 200 under the New York Financial Services Law.
- During this engaging one-hour episode, Jack and Konstantin delve into the intricacies of prime brokerage within the digital asset sector.
- We’ll handle the integration, risk management, execution and reporting, so you get the most productive trading experience possible.
- The episode also covers a range of fascinating topics, from the impact of the Bitcoin whitepaper on Jack’s vision to the evolution of the industry post-FTX.
We combine our core blockchain infrastructure services with the breadth of our Global Markets business, offering bespoke financial and syndication services. We offer our clients leading investment advice to ensure that they’re always in-touch, well-informed, and up-to-date with the markets they are exposed to. With digital asset custodians springing up almost daily in this new age of finance, it’s hard to know who to trust.
While these forms of authorization are similar, a New York State limited purpose trust company charter may provide some additional benefits. For example, a limited purpose trust company can exercise fiduciary powers, while a BitLicensee cannot. In addition, a limited purpose trust company can engage in money transmission in New York without obtaining a separate New York money transmitter license. For more information about applying for a limited purpose trust charter, visit Commercial Banks & Trusts.
To date, multiple businesses provide one or more of the core services provided by a prime broker, but no single player has yet to check all of the boxes. While the digital asset space requires a unique set of tools to service its customers, there are clear benefits to building a more streamlined and integrated product offering. In this piece, we cover the history of prime brokerage, its revenue generating services, and the importance of prime for digital assets. “Listening to our institutional counterparts, there was clear demand for Hidden Road to launch the first real prime brokerage solution for OTC trading of digital assets,” says Michael Higgins, Global Head of Business Development for Hidden Road. ROAD TOWN, British Virgin Islands, Oct. 13, 2022 /PRNewswire/ — Hidden Road, the global credit network for institutional investors, today announced the public launch of its over-the-counter (OTC) prime brokerage for digital assets, for both US and international counterparties.
Digital assets are speculative and highly volatile, can become illiquid at any time, and are for investors with a high risk tolerance. In our Institutional Digital Asset Survey, we found that institutional investors’ interest in digital assets is on the rise. From 2019 to 2020, the portion of US investors with an allocation of digital assets increased from 22% to 27%. Even more encouraging, 44% of traditional hedge funds surveyed expect to have a bitcoin allocation of more than 1% in the next five years. We partner with pioneering financial institutions, funds, and select start-ups, to provide comprehensive prime brokerage services with innovative financing solutions. Listeners will gain valuable insights into the future of decentralized finance (De-Fi) for institutional players and how the increased accessibility offered by prime brokerage services could drive overall market growth.
To date, traditional institutional investors that have entered the space have mainly been interested in building long exposure to relatively more established assets such as bitcoin and their demands have been satisfied by custody and liquidity aggregation solutions for the most part. Additionally, as large traditional hedge funds looking to deploy more complex trading strategies enter digital asset markets, they will demand incremental financing solutions and financial products. In conjunction with Hidden Road’s support for exchange-traded products, the new OTC prime brokerage service enables true spread optimization for the buy side and brokerage communities, and a quicker, wider distribution channel for institutional market makers. Employing a novel approach that nets positions across all liquidity providers and venues, the offering introduces new operational and capital efficiencies while reducing credit risk, settlement risk and operational risk. Additionally, by increasing access to liquidity and expanding distribution, Hidden Road’s digital asset prime brokerage eliminates the need to onboard and negotiate multiple bilateral relationships. Financing solutions that allow clients to borrow funds or borrow assets also reduce the costs of deploying more sophisticated and opportunistic trading strategies.
In this article, we discuss the issues addressed by DCR, and consider the ramifications for market participants who engage in the activities addressed in the Staff Advisory letters. Privacy Policy.Security products and services are offered by Galaxy Digital Partners LLC, a member of FINRA and SIPC. We offer our clients the highest level of industry security for your funds – fully insured at all times – even in transit.
Capital introduction could be an especially valuable concierge service for native digital asset hedge funds who don’t have access to asset allocators such as endowments, foundations, pensions, fund of funds and family offices in traditional markets. Another way that digital asset prime brokers could differentiate would be to provide access to deals in which a banking division may participate – e.g. digital asset company IPOs or ICOs. Tying it all together, the ability to seamlessly trade spot and derivatives side by side with built-in financing can help bring down the costs of trading and investing in digital asset markets and make market participants more capitally efficient.
Hidden Road’s credit network facilitates OTC trading between market participants, with trades executed bilaterally between counterparties and intermediated by Hidden Road as the credit counterparty. Hidden Road’s OTC prime brokerage will further institutional adoption of digital assets by giving counterparties full ownership and control over their execution technology, liquidity and custodian choice for both fiat and digital assets. BEQUANT Pro is a prime brokerage platform for institutional clients for a new digital asset class. Its 100+ institutional clients are offered direct market access to multiple trading venues, simplified KYC and compliance verification and an ability to create multi crypto and fiat accounts.
The company was founded by executives from Goldman Sachs, Accenture, and top quantitative asset managers with a common vision to leverage domain expertise and emergent technologies to make electronic trading simpler, more transparent and more efficient for institutional investors and traders. OneChronos is a Y Combinator alum backed by top venture investors in fintech, digital marketplaces and A.I. OneChronos is a technology company at the intersection of capital markets, machine learning and mechanism design, providing innovative execution venues to those in the electronic trading world. [3] Note that in March 2019, CFTC staff (now called the Markets Participant Division) granted no-action relief to swap dealers who are prime brokers facilitating prime brokerage activities and liquidity for SEFs.