Crypto software firm AlphaPoint is bringing margin trading to its client exchanges.
Announced Tuesday at CoinDesk's Invest NYC conference, the technology provider is adding support for margin trading, with a raft of trading options and controls for crypto brokerages and exchanges utilizing its software.
AlphaPoint’s platform is customizable, to better serve clients operating in different markets and regulatory regimes, spokesman Patrick Shields told CoinDesk:
"Rather than creating a one-size fits all model, we focused on creating a platform that is highly configurable," he said. "Some examples include requiring approval workflow for end users, and configurable minimum deposit size, leverage and liquidation levels, fees and other settings."
At launch, the company said that no clients were immediately implementing AlphaPoint margin trading, but "several firms" are beta testing the platform, including the Canadian cryptocurrency trader National Digital Asset Exchange (NDAX), according to a press release.
Bilal Hammoud, NDAX founder and CEO, said in a statement that he looked forward to the partnership:
Margin trading – when one buys a security (or in this case a cryptocurrency) using borrowed funds – is becoming increasingly prevalent in the crypto space as many popular exchanges continue implementing the feature. Binance rolled out margin trading in July, and Bakkt, Coinbase’s professional trading platform and Kraken all have the option.
Trading image via Shutterstock
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.