Pure Digital Partners with Cobalt
Posted by Colin Lambert. Last updated: March 1, 2022
Ahead of its launch of trading services in the second half of 2022, wholesale digital assets platform Pure Digital has entered into a partnership with infrastructure provider Cobalt to offer critical credit and post-trade solutions to the cryptoasset market.
Cobalt’s automated platform creates a single version of all digital asset trade data onto a ledger and solves for the real-time management of credit and settlement, reducing operational and counterparty risk. Institutional participants will be able to trade on Pure Digital through existing prime bank or custodial relationships and infrastructure.
The platform, which will offer an OTC market for digital currencies with physical delivery and bank grade custody will support trading utilising bilateral credit, enabling counterparty control for all trading participants and a significant increase in efficient capital utilisation. “This will establish a robust market for price discovery and the exchange of risk,” the firm says.
“We are bringing to the wholesale market exactly what has been missing, an interbank marketplace which is transparent, efficient, and bank-grade,” says Lauren Kiley, CEO of Pure Digital.
Campbell Adams, founder of Pure Digital, adds, “Pure Digital is pleased to formalise our cooperation with Cobalt as we share the same vision for the future of wholesale digital currency markets. We look forward to working closely together to deliver the primary venue for digital currency trading.”
Pure Digital and Cobalt are both multi-custodial. Market access providing participants will be free to leverage digital assets and manage risk through a smart routing mechanism. Cobalt’s solution removes the risk of limit breaches and the need for trades to be pre-funded, allowing net settlement to occur according to market best practice and regulatory standards.
“Digital Assets have been growing as a lucrative trade opportunity, but market infrastructure must be modernised for better control, market access and a secure settlement process,” says Darren Coote, CEO of Cobalt. “Through our partnership with Pure Digital, we are focused on enhancing settlement and credit management to deliver a primary venue for participants to trade with minimised risk and cost. Pure Digital’s deep market knowledge and banking network makes them an ideal partner to continue our focus on developing a new standard for institutional-grade infrastructure.”