Koine, the provider of segregated, institutional custody and settlement services for digital assets and fiat money, has integrated with digital broker GC Exchange Limited (GCEX); two firms regulated by the UK’s Financial Conduct Authority (FCA).
GCEX, founded in 2018, will use Koine’s custody and settlement services, enabling GCEX’s client base to benefit from Koine’s cutting-edge platform for both fiat and digital currencies. Koine’s proprietary technology will support GCEX, which allows for the deposit and extraction of value (on and off ramps) in a large number of digital assets and FX pairs, from majors to exotics.
GCEX will also use Koine’s paying agency service, designed to reduce costs and dramatically improve security. This service allows clients to send digital assets directly to the GCEX-labelled hub on the Koine platform. In this way, the use of hot and cold wallets is minimised, reducing the number of transactions between the two platforms and making the movement of assets ultra-secure.
Koine customers gain access to a post-trade solution from a business licensed by the UK’s Financial Conduct Authority, a service specifically designed for institutional investors to mitigate counterparty, insolvency and credit risks of trading on exchanges. The automated service obviates the need for humans in post-trade processes, delivering massive operational scalability with near real-time egress of digital assets from custody where required.
Koine’s unique security model, using Digital Airlocks™, replaces the cold store and hot wallet model which exposes private keys to humans and results in poor operational scalability. By combining this new digital asset security model with fiat custody and DvP settlement, Koine provides a post-trade solution that is suitable for traditional capital markets.
Based in London, GCEX is designed to meet the demand for regulated and compliant exposure to the digital assets space. Authorised and Regulated by the Financial Conduct Authority (FCA), GCEX provides funds, brokers, asset managers, professional traders, and banks with a suite of cutting-edge products, including AI systems. This allows its clients to automate on-boarding, offer and trade digital assets and currencies with liquidity from Tier 1 banks.
Hugh Hughes, Chairman and CEO at Koine, said: “We’re thrilled to enter into this partnership with GCEX. We have already seen a positive industry response to Koine’s ultra-secure scalable institutional-grade solution for custody and settlement, and this deal highlights a further consolidation of our reputation as the institutional platform of choice.
“By working with fellow industry innovators, we know that, together, we will deliver the infrastructure and service our clients need to protect and fully leverage the potential of their digital assets. GCEX’s proven experience and valuable insight into the digital asset exchange market, as well as their global appeal thanks to the wide range of currency off-ramps they offer, will be tremendously beneficial to Koine’s development as we continue to go from strength to strength in 2020.”
Lars Holst, CEO at GCEX, said: “It is exciting to be entering into a partnership with Koine at such a pivotal time in the digital assets space. In choosing Koine as the custody and settlement provider for our clients, we will be able to extend our reach into institutional capital, and further capitalize on our advantage of offering a range of currency off-ramps, further reinforcing our position in the global exchange ecosystem.”