Definity, Montgomery Lake, to Launch FX Settlement Ecosystem
Posted by Colin Lambert. Last updated: May 28, 2021
Fintech Definity and family office Montgomery Lake (UK) are partnering to enable network of European family offices to implement a “near real-time FX settlement ecosystem”.
The pilot project is to last 12 months during which the firms state, “a range of buy-side clients will participate in integrating its EMS and OMS systems with DeFinity, facilitating spot FX transactions”. The collaboration aims to include NDFs and forward contracts in the near future.
DeFinity is a layer-2 protocol and decentralised exchange solution that utilises existing blockchain frameworks, including WeOwn, Ethereum, Polkadot, Binance Smart Chain, and Cardano. With a focus on interoperability, the firm says its ambition is to create a more inclusive decentralised ecosystem that helps to bridge the old with the new. It adds that buy-side clients often face the issue of credit access when wanting to trade on primary markets, but that its solution enables clients and market makers to transact swiftly and efficiently, removing third-party intermediation fees.
Manu Choudhary, CEO of DeFinity, says “This partnership will enable a range of family offices to settle and clear their foreign exchange deals with us.”
I.J Piekarska, managing director of Montgomery Lake (UK), adds, “Our aim is to provide clients, shareholders, and stakeholders with long-term returns. We strive to connect our family office network with suitable technology solutions. DeFinity’s ambitious plans for the future and their innovative approach to resolving some of the biggest issues in FX has attracted interest from our underlying investors.”
Florian Batliner-Staber, chief product officer of DeFinity, says, “As part of our product development roadmap, we seek to engage in cross-border European regulatory conversations with central banks and authorities to create a harmonious and future-proof framework catering for transparency, financial inclusion, and market efficiencies that are currently being developed.”