Singapore-based cryptocurrency exchange KuCoin has teamed with DigitalBits, a blockchain protocol layer focused on branded crypto assets, for the launch of what it calls a new kind of OTC desk.
KuCoin’s Enterprise Currency Desk (ECD) is tailored toward companies looking to venture into blockchain technology and decentralized finance (DeFi) by providing bespoke solutions for the acquisition of digital assets, the company says.
The new partnership seeks to simplify that process for businesses, and further allows them to access larger quantities of tokens to power operations such as wallet authentications, transaction fees and staking.
“A designated service to address token procurement and liquidity will allow companies to easily engage in blockchain-based solutions, without having to employ experienced traders to obtain and utilize large amounts of tokens,” the company said in a press release Wednesday.
DigitalBits will serve as the intermediary for the provisioning of tokens required for certain business functions, said Michael Luckhoo, vice president of operations at DigitalBits. “Leveraging an ecosystem partner helps the business intake multiple token requirements than seeking to achieve this from each project separately.”
KuCoin raised $20 million in Series A funding backed by venture capital firms IDG Capital, Matrix Partners and Neo Global Capital in late 2018 and has grown to more than $33.5 million in daily trade volume, according to public data.
Citing rising demand for tokens in use cases such as rewards, KuCoin said its new service would reduce friction experienced by firms when trying to obtain, say, stablecoins in large quantities, or to launch branded tokens.
“Consumers do not have to know how to access other tokens via trading or exchange accounts, but instead, with a seamless interaction with the brand or loyalty point system,” Luckhoo said.