Fireblocks, X-Margin Partner to Offer Institutions Cross Margin Trading in Crypto Derivatives

The firms will leverage privacy enhancing zero-knowledge proof technology to enable institutional trading firms to cross margin and bilaterally trade derivatives from a single pool of collateral.

By Sebastian Sinclair

Sep 8, 2020 at 1:02 p.m. UTC

Updated Sep 14, 2021 at 9:53 a.m. UTC

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Digital asset infrastructure provider Fireblocks has teamed with X-Margin, a distributed clearing and settlement platform, in a bid to boost institutional offerings in the crypto derivatives market.

Announced Tuesday, the firms will leverage privacy-enhancing zero-knowledge proof technology to enable institutional trading firms to cross-margin and bilaterally trade derivatives "without compromising security,” X-Margin CEO Darshan Vaidya said.
Trading bilateral derivatives using X-Margin’s system allows investors to benefit from trading at different venues from one pool of collateral.
This can potentially drive down costs by removing the need for a central middleman to verify positions.
It would further reduce the counterparty risk associated by holding funds on multiple exchanges to service derivatives contracts.
Fireblocks said the new partnership would enable the trading of digital asset derivatives using any form of collateral.
According to the announcement, JST Capital, global crypto firm XBTO and digital asset investment company LedgerPrime became the first customers to successfully trade using X-Margin’s distributed clearing network.
Fireblocks recently joined forces with blockchain analytics firm Elliptic to automate anti-money laundering compliance for their shared institutional clients.
In 2019, the firm raised $16 million in Series A funding from investors including Cyberstarts, Tenaya Capital, and Eight Roads, the proprietary investment arm of Fidelity International.

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