Revolutionary e-trading venue will connect the dots between digital assets and the FX market
The world’s first live e-trading venue for institutions seeking to trade between gold, digital assets and forex is shortly to be a reality, according to sources close to the business. 1Gamma, which will soon be in a position to onboard clients, will offer separation of trade execution and custody while also allowing counter-party anonymity.
The venture is being supported by an as yet unidentified Tier 1 bank which will intermediate credit in order to facilitate trade execution without the need for pre-funding transactions and settle trade without undue counterparty risk.
The new platform is going to be custody agnostic and will represent a merging of the existing transactional capabilities of DMALINK (forex and gold trading) and DeFinity Markets (digital assets trading). Between them the two firms have already transacted over a trillion dollars including across 63 currency pairs.
“It is our belief that the digital asset market structure will soon closely mirror FX where assets and capital aren’t parked on centralised exchanges,” explained Manu Choudhary, CEO of DMALINK. “Counterparties in these asset classes are seeking an enterprise grade solution that fulfils their financial, regulatory and operational requirements.”
Choudhary became CEO of DMALINK in 2019 and was a co-founder of the DeFinity Markets, the data centric ECN in October 2020.
Safer and more regulated trading
Emphasis on safer and more regulated trading of digital assets has increased significantly since the collapse of cryptocurrency exchange FTX in December. With regulators now focused on the role played by exchanges in digital assets trading, market participants are looking for solutions that can provide a better means of asset custody and a smoother interface with traditional financial markets.
1Gamma is designed to act as a marketplace where clients can buy and sell currencies, gold and digital assets anonymously.
1Gamma functions solely as a technology platform and is not a counterparty to any trades. This enables fund managers, who may be constrained by their ability to only face investment-grade counterparties, to gain access to the digital asset market for the first time and creates the first credible bridge from traditional finance to digital finance.
The company is also working on solutions for investors in the area of machine learning, including the development of volatility predictors for both active traders and risk management teams overseeing digital assets exposures.
Choudhary added: “1Gamma is concluding a series-A capital raise with institutional investors. We are always looking for suitable partners to help accelerate our unique digital asset offering.”
Source: https://www.thearmchairtrader.com/e-trading-venue-digital-assets-1gamma/
