OTCXN, a blockchain-powered capital markets infrastructure company, announced that it has launched its OTC Block Trading venue for crypto trading. Transactions are settled in 250 milliseconds with instant clearing and settlement and information leakage is eliminated, explained Rosario Ingargiola, OTCXN CEO and founder, speaking at Finance Magnates London Summit.
Ingargiola described the service as the “technology equivalent for prime brokerage”, which includes collateral management among other functions for custodians and trading desks. He also noted that they are currently onboarding Fidelity as well as financial services firms in jurisdictions such as Liechtenstein, Malta and Switzerland.
The venue is open to all clients with accounts at custodians on the OTCXN network, including Kingdom Trust and Prime Trust, which are regulated US entities that offer custody services for fiat and cryptocurrencies. Trading on the venue includes fiat-for-crypto, crypto-for-crypto and fiat-for-fiat.
Cryptocurrency is always held in deep, cold storage, and neither side of the trade ever sends funds or crypto first. An immutable record of all transactions on a proprietary blockchain layer brings transparency and provability to facilitate the audit, fund administration and regulatory requirements of institutional clients.
Later this year, OTCXN will be launching a matching engine, LiquiMatch, as both a dark pool and lit Central Limit Order Book-style exchange for cryptocurrencies. There’s also plans to launch a marketplace for coin lending and leverage financing in early 2019.