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.

AccessTimeIconSep 8, 2020 at 1:02 p.m. UTC
Updated Sep 14, 2021 at 9:53 a.m. UTC

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.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

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.

Trending

1
CoinDesk - Unknown
Metagood: Bringing Social Good to Web 3

Bill Tai and Amanda Terry discuss Metagood, a NFT for social good platform.

CoinDesk - Unknown
2
CoinDesk - Unknown
Deutsche Bank: Crypto Freefall Could Continue Because of the System’s Complexity

As bitcoin and other cryptocurrencies are speculative, high-risk assets, they are disproportionately affected by central bank tightening, the bank said.

CoinDesk - Unknown
3
CoinDesk - Unknown
Michael Saylor's MicroStrategy Purchased Another $10M of Bitcoin Over Past Two Months

The company disclosed the acquisition of another 480 bitcoins, bringing total holdings to 129,699 coins.

CoinDesk - Unknown
4
CoinDesk - Unknown
Citi Flags Crypto-Backed Real Estate Mortgages Amid Falling Market Conditions

Citigroup has published an investor note on the rise of crypto-backed mortgages and financing of digital property purchases.

CoinDesk - Unknown