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DeFinity Markets has secured approval from the Jersey
Financial Services Commission (JFSC) to launch an investment-grade digital assets
matching and settlement platform. According to the company’s statement, this initiative leverages Jersey’s Virtual Asset
Service Provider (VASP) framework to offer bank-backed credit intermediation to
investment-grade clients.
Addressing Over-collateralization
The platform reportedly aims to address key industry
challenges, including counterparty risk and over-collateralization, making it a
promising new player in the global financial landscape.
DeFinity Markets, a pioneer in institutional digital
asset trading, is set to expand its footprint in the financial world with the
launch of its new platform in Jersey. This marks a strategic move for the
company, which has been operational in the spot foreign exchange market since
2014.
Connected to some of the world’s most prominent
banks—such as Nomura, Commerzbank, and Credit Agricole—DeFinity Markets has
already established a strong presence among global buy and sell-side clients.
We are beyond thrilled to announce that we have been granted VASP (Virtual Asset Service Provider) status by the Jersey Financial Services Commission, making us one of only a handful of businesses who have achieved thisThis license will allow us to launch our full bank backed…
— DeFinity Markets (@definitynetwork) August 19, 2024
DeFinity Markets’ new platform introduces a challenger
model where investment-grade clients can transact using bank-intermediated
credit through the prime brokerage desk. This innovation aims to eliminate the
burden of over-collateralization, which has been a significant obstacle in
digital asset trading.
Expanding User Base
Jersey has become a hub for financial innovation, and
DeFinity Markets’ decision to base its operations there underscores the
island’s growing reputation. The company has partnered with Carey Olsen Jersey
for all legal matters, reinforcing its commitment to establishing a solid
presence on the island.
Looking ahead, DeFinity Markets plans to aggressively
expand its user base, attracting liquidity providers (LPs) and clients
interested in transacting with investment-grade counterparties. The platform’s ability to offer efficient digital
asset trading solutions addresses the increasing demand for sound counterparty
risk management in the growing digital assets market.
Last year, DeFinity Markets collaborated with One Trading, an EU-based crypto trading exchange, to broaden liquidity access for eligible institutions. According to the company, this partnership aims to create custody of institutional digital assets and fiat rails in the region.
This article was written by Jared Kirui at www.financemagnates.com.
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