Republic Protocol, an open-source protocol powering dark pool exchanges, has launched the first decentralised dark pool exchange for the trading of digital assets in the world today. The exchange, called RenEx, allows trades to be completely invisible before execution, even to Republic Protocol.
Through the exchange, traders will be able to place large trades on a hidden order book. According to the statement, the trades are matched through an engine that is built on a secure multi-party computation protocol. The details of the trade will only be made public after they have been executed.
Dark pools, or alternative trading systems (ATSs) are private trading platforms run by brokerage firms that don’t disclose pre-trade prices. These trading platforms are very common on Wall Street and almost all of the big investment banks such as JP Morgan Chase and Goldman Sachs operate one.
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RenEx is targeted towards institutional investors and large volume traders wanting to enter into the crypto space. The exchange supports the integration of know-your-customer (KYC) and anti-money laundering (AML) compliance practises.
Commenting on the launch of the exchange, Taiyang Zhang, the CEO of Republic Protocol said: “RenEx is our first step in providing a suite of tools for institutional investors and funds to trade the digital asset market in a more secure, compliant, and equitable manner.
“We are offering a service that simply does not exist in the market today and already have the strong support of major funds, strategic investors, trading desks, and many other market participants.”
Future developments of Republic Protocol
In the near future, Republic Protocol will roll out scheduled improvements to RenEx. This will include adding new order types, network upgrades and further undisclosed developments. According to the statement, the long-term vision of Republic Protocol is to create competitive dark pools that will cater to the specific needs of all different traders. Furthermore, the company wants to help other firms to build dark pools of their own, using Republic Protocol’s base layer.