Crypto Facilities and Elliptic bring enterprise standards to bitcoin trading
09 July 2015 | 6954 views | 0
A pair of bitcoin firms are hoping to bring enterprise adoption of cryptocurrency trading a step closer through the launch of a clearing and settlement function that separates custody from other exchange functions.
Under a new deal, bitcoin derivatives exchange Crypto Facilities will now see its client accounts hosted in the vaults of cryptocurrency security specialist Elliptic.
Each client owns their own segregated, ring-fenced, fully insured account which is settled on the blockchain every day. Any movement is exposed to the client and can be independently verified on the blockchain.
The partners say that by working together they address a major weakness of bitcoin trading: that clients' assets are typically managed directly by the exchange and cannot be audited externally.
Jean-Christophe Laruelle, COO, Crypto Facilities, says: "Capital markets would never entertain the idea of having an exchange hold assets or of pooling funds together. The history of high profile hacks has demonstrated that this is not a solution for the bitcoin space either."
James Smith, CEO, Elliptic, adds: "This deep integration of our two firms is an essential step towards enterprise-scale bitcoin trading. With Crypto Facilities’ strong and robust trading infrastructure, we expect trade in bitcoin derivatives will flourish, improving bitcoin’s price stability and driving enterprise adoption."