Institutional cryptocurrency exchange launches first fully confidential trading platform
Enclave Markets, an institutional-grade Digital Currency and asset trading platform combining the best parts of centralized and decentralized finance, announced on 8th September, the launch of Enclave Cross, a novel service that lets participants to trade blocks of digital currencies and assets at the given market price without any information leakage or any market impact. Enclave Cross allows approved participants to execute block trades in a fully private and safe manner. The trading platform uses an advanced technology based on safe hardware that implements an enclave where code executes a smart contract free from interference.
Enclave Markets crypto trading platform is built entirely within a secure enclave that thwarts exchange operators from reading order activity and safeguards assets using a mechanism that eliminates the possibility of a single point of failure. Its initial offering, Enclave Cross, gives customers access to an institutional-grade, fully confidential Crypto trading platform that lets participants to trade blocks of Digital Currencies and assets at the given market price without significant market signal and impact.
Enclave Cross has started early-stage production testing with selected institutional trading firms and prime brokers including Hidden Road Partners, LedgerPrime, Republic Crypto, Fir Tree Partners, Scrypt, FBG Capital, and Blizzard Fund, among other brokers.
Currently, executing large orders on existing Cryptocurrency Trading Platforms can lead to material Crypto Market bearing due to these large trades being viewed as crypto market momentum signals. When other market participants follow these signals, they can expose proprietary trading strategies and amplify Digital Currency price movements. Even if no crypto market participant acts on the trade, such large orders move the crypto market and result in poor execution and adverse price action. Enclave Cross solves these problems by creating an OTC marketplace where approved institutional digital currency traders can make block trades off-chain in a fully private and safe environment.
Also Read: China Is State-Backed Open-Source Blockchain Technology Enlists Hong Kongs HSBC And Emperor Group
Also Read: Russia Exploring Stablecoin Payments With Friendly Nations: Report
David Wells, CEO of Enclave Markets, noted, "The existing structure of both centralized and decentralized institutional-grade cryptocurrency exchanges don't allow institutions to take full advantage of what cryptocurrency has to offer. One of the founding principles of cryptocurrency was the concept of leveling the playing field and creating trading markets that are optimized for fair-mindedness. On Enclave Cross, no one, not even a system administrator, knows the amount of open interest before trades are executed. At Enclave Markets, we give our customers the ability to maximize these advantages - all within a fully compliant network."
Permissioned crypto traders move their assets off-chain into the safe Enclave technology which allows Enclave Cross to match traders directly with interested counterparties without exposing individual wallet addresses. This assists to address the time mismatch that can result from a large trade which can lead to slippage, data leakage, and technical signals in the crypto market. Enclave Cross currently supports trading of Avalanche, Ethereum, Bitcoin, and USDC with more Digital Assets soon to come.
Wells further commented, "Since all crypto assets and trades are being held and executed off-chain, others in the crypto marketplace will see only when funds are withdrawn from the platform, reducing the impact of a time mismatch of buyers and sellers. We are excited to offer Enclave Cross as an institutional-grade, fully confidential trading platform and are looking forward to working with our customers to build out a more fulsome suite of digital asset trading products."
Leave a Comment