Quantave, a provider of trade life-cycle infrastructure for digital assets such as Bitcoin and Ether, officially entered a closed beta-testing phase today. The infrastructure opens the digital assets market to institutional traders and investors, transforming the way they engage and transact with this dynamic market, whilst ensuring the safety and security of their assets. Quantave is now rigorously testing the model with its initial partners.
The existing trade-lifecycle infrastructure that underpins this nascent market has, until now, been largely unsuitable for institutional investors. Accessing liquidity has been complex due to the fragmented nature of the market requiring repetitive onboarding and capital management processes.
Trading volumes in digital assets, such as Bitcoin and Ether, are experiencing meteoric growth. Spurred by the growing interest in blockchain technology, global digital asset trading volumes now regularly peak at more than $2bn* per day—compared to less than $50mn* just four years ago. This rapid growth is attracting the attention of institutional investors and traders, keen to include this asset class amongst their investment strategies.
Quantave’s solution simplifies access to liquidity in these markets by providing a robust and secure trade-lifecycle structure that is tried and tested in traditional markets. For the first time, institutional participants such as family offices, fund managers, hedge funds, FX brokers, market makers and authorised participants will be able to access multiple broker-dealers and exchanges via a unified gateway, reducing the complexity facing new entrants to the market and resulting in a deeper pool of liquidity.
To reassure investors that they can engage with this market with confidence, Quantave’s infrastructure incorporates independent, EU regulated intermediaries to provide a clear distinction between the "execution" and "asset safeguarding" functions to remove potential conflicts of interest.
Paul Gordon, CEO, Quantave, said: “Traditional markets have evolved with key roles isolated from each other with the objective of reducing risk and creating healthy competition. We aim to emulate this with our infrastructure. Both institutional investors and liquidity venues will benefit; investors will be able to transact confidently across multiple venues through independent asset safeguarding and execution functions, ultimately reducing risk. Liquidity venues will benefit from an increase in order-flow as investors are able to enter into the market via a proven channel. This is a very exciting time for this industry and marks a first step to accessing and unlocking liquidity in this increasingly sought after asset class. ”