Digital asset custodian Digivault launches ExchangeConnect, a new service to safeguard crypto assets when trading on exchanges

Rhea-AI Summary

Digivault, part of EQONEX Group (NASDAQ: EQOS), has launched Digivault ExchangeConnect, a service allowing clients to trade digital assets while securely holding them in FCA-registered custody. Available on Bitfinex, this service addresses security and inefficiency issues faced by institutions in the crypto trading space. Assets are mirrored as trading balances without leaving Digivault, with settlement options at day's end or upon request. This initiative aims to enhance trading efficiency for institutional investors, reflecting Digivault's commitment to security and innovative financial solutions.

Positive

• Launch of Digivault ExchangeConnect, enhancing trading efficiency for clients.
• Service allows safe trading of assets while maintaining custody within Digivault.
• Collaborative launch with Bitfinex enhances credibility and market presence.

Negative

• Risks associated with the crypto market could affect customer adoption.
• Dependence on third-party exchanges may expose clients to systemic exchange risks.

Digivault ExchangeConnect now available on Bitfinex

LONDON, Oct. 7, 2022 /PRNewswire/ -- FCA-registered crypto custodian Digivault, part of the EQONEX Group (Nasdaq: EQOS) today launched Digivault ExchangeConnect, a new service that enables clients to safely hold their assets within their Digivault FCA-registered custody account whilst trading with them on an exchange. Digivault ExchangeConnect is now available on Bitfinex with more exchanges planned. 

As an increasing number of institutions and investors add digital assets to their investment strategies, they continue to face challenges with trading on exchanges. These include security and counter-party exposure created from needing to leave assets on the exchanges; capital inefficiencies with assets allocated across multiple exchanges; and the cost and time inefficiency in capital rebalancing efforts.

Digivault ExchangeConnect solves these issues by enabling customers to allocate and lock-up amounts of their custodied digital assets for trading on a specified exchange. Their locked-up assets are mirrored as available trading balances on the exchange in real-time but never leave the safety of Digivault. 

When using ExchangeConnect, clients can trade normally using their Bitfinex trading account. Digivault is not involved in any exchange activities such as trading or order routing. Settlement occurs at the end of the day or intraday upon request.

Clients can unlock their assets from Bitfinex and withdraw them from Digivault. When additional, alternative exchanges are available, clients will also have the ability to quickly mirror their assets onto other exchanges at a low-cost. 

Robert Cooper, Digivault CEO said, "We built Digivault because we had a deep understanding of the unique security requirements needed for digital assets, as well as the stringent standards of institutional internal risk committees. Digivault ExchangeConnect is an important innovation for global investors and sophisticated traders who are looking to safeguard their assets without sacrificing efficiency when trading on exchanges." 

"It's been a great experience working with Bitfinex as our launch partner to perfect the service before bringing it to market," said Robert Cooper. 

"Custody and credit risk represent the key foundational requirements for institutional customers seeking exposure to Bitcoin and the emerging digital token economy," said Paolo Ardoino, CTO at Bitfinex. "Digivault's ExchangeConnect represents a comprehensive custody solution for institutional customers entering the space."

 Digivault ExchangeConnect Overview

• Digivault customers opt-in to use ExchangeConnect to connect to Bitfinex or their exchange of choice, when available
• Client allocates an amount of their custodied assets for lock-up for use when trading on exchange
• Locked-up assets are mirrored in real-time in their exchange account but do not leave the safety and security of Digivault
• Client can trade directly on exchange.  Digivault is not involved in any exchange activities, such as trading or order routing.
• Settlement is activated at the end of the day or upon request. Following settlement, assets held within client's Digivault wallets match their mirrored trading balance on exchange.

About Digivault 

Digivault provides digital asset custody that integrates physical and virtual security, giving institutions tangible solutions in a rapidly evolving world. We deliver a powerful custodian that combines multiple layers of protection, eliminating the need for trust in a single person or group of people. As part of a Nasdaq-listed company, we are accountable to the SEC, meaning increased regulation. However, we eliminate the need for trust through our processes and technology, providing our clients with peace of mind.   

Digivault is part of the EQONEX Group. EQONEX Limited (NASDAQ: EQOS) is a technology driven digital assets financial services group that provides institutional grade infrastructure, custody and asset management solutions to clients. The Group's digital assets ecosystem has been designed to accommodate the needs of institutions and individuals with the same degree of regulatory oversight and security they are accustomed to in traditional financial markets.

For more information visit: www.digivault.com. Follow Digivault on social media on Twitter @DigivaultGlobal, and on LinkedIn. 

Forward-Looking Information 

Any forward-looking statements in this press release are based on available current market material and management's expectations, beliefs and forecasts concerning future events impacting EQONEX. You are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, as well as assumptions, which, if they were to ever materialize or prove incorrect, could cause the results of EQONEX to differ materially from those expressed or implied by such forward-looking statements. The forward-looking statements made in this press release speak only as of the date hereof and we disclaim any obligation, except as required by law, to provide updates, revisions or amendments to any forward-looking statements to reflect changes in our expectations or future events. 

View original content:https://www.prnewswire.com/news-releases/digital-asset-custodian-digivault-launches-exchangeconnect-a-new-service-to-safeguard-crypto-assets-when-trading-on-exchanges-301643518.html

SOURCE Digivault

FAQ

What is Digivault ExchangeConnect?

Digivault ExchangeConnect is a new service that allows clients to securely trade digital assets while holding them in custody.

When was Digivault ExchangeConnect launched?

The service was launched on October 7, 2022.

Which exchange is Digivault ExchangeConnect currently available on?

It is currently available on Bitfinex.

How does Digivault ExchangeConnect improve trading safety?

It enables clients to mirror their custodied assets for trading without those assets leaving Digivault's secure custody.

What are the benefits of using Digivault ExchangeConnect?

Clients benefit from enhanced security, real-time mirrored balances, and efficient trading without sacrificing asset safety.