24Exchange and FXCH Partner for Crypto Clearing
Posted by Colin Lambert. Last updated: April 27, 2022
FXCH (Hong Kong) has partnered with 24Exchange (Bermuda) to offer a clearing and settlement option to crypto cash institutional market participants. The service, available to all 24Exchange members, provides, the firms say, the first clear demarcation between trade execution, margin/risk management and settlement for the crypto asset class.
FXCH operates a real time netted clearinghouse model for Institutions who trade digital assets on multiple exchanges and OTC venues. The market utility works on the principle of managing collateralised multi-counterparty risk, culminating in one net settlement at the end of every trading day. Users are afforded x3 leverage and real time cross-asset and cross-venue netting of positions, without the requirement to transfer assets prior to settlement, and therefore greatly reducing both systemic risks and cost of capital.
The firms say the clearinghouse concept paired with 24Exchange’s trading platform liquidity and technology allows market participants to exchange their exposure at the lowest possible cost and manage their settlement with the highest level of funds and operational safety.
“We are pleased to join with The Foreign Exchange Clearing House to help our institutional clients manage settlements of their cryptocurrency trades on our robust platform,” says Dmitri Galinov, CEO and founder of 24Exchange. “Through this partnership, sophisticated institutional market participants around the world who trade crypto assets on 24 Exchange can access fast, low-cost clearing and settlements with the highest levels of confidence, security and efficiency.”