Cinnober Financial Technology has announced a partnership with BitGo to extend their offering to the cryptocurrency market. Cinnober currently offers exchange and clearing technology solutions including surveillance, pre and post trade risk management, trade monitoring and market data services.
According to Chief Executive Officer, Veronica Augustsson, “Cinnober has seen an unprecedented growth of the cryptocurrency market in the past few years. Often started by people with little experience of capital markets technology, and as a consequence crypto exchanges face significant challenges in terms of capacity, scalability and outages.”
Collaborating with BitGo, which offers a multi signature platform enabling customers to hold multiple currencies, the joint offering will provide users a custodian solution as well as resources to tackle increasing market volumes, mitigate outages, monitor market activity and scale their trading operations.
“All of this is necessary to build trust in this space,” said Augustsson.
With many institutional traders concerned about the safety and security of digital assets, Cinnober’s move may be the one needed to bring an influx of institutional investors into the crypto world.
At the Executive’s Club of Chicago’s Bitcoin Boom luncheon, we reported that Peter Johnson from Jump Trading said that institutional investors are concerned about the infrastructure around the cryptocurrency markets.
“Compliance, custody and surveillance, for example, are things people are working on and we will have great solutions but we aren’t there yet,” said Johnson, earlier this year.
Are we there now? Cinnober believes so.
Augustsson concluded, "this offering underpins Cinnober's proven trading and surveillance solutions used by regulated exchanges in established financial markets and aims to enhance trust and integrity in the crypto asset space, addressing concerns and expectations from institutional investors as well as meeting regulatory requirements."
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