Quantave, a London based startup developing trade life-cycle infrastructure for digital assets, officially entered its closed beta-testing phase today. It aims to open the market to institutional traders and investors who are attracted by the recent growth in trading volumes in digital assets such as Bitcoin and Ethereum.
The company explains that the existing trade-lifecycle infrastructure that underpins the market has, until now, been largely unsuitable for institutional investors. Accessing liquidity has been complex due to the fragmented nature of the market requiring repetitive onboarding and capital management processes.
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Quantave’s solution simplifies access to liquidity so that institutional participants such as family offices, fund managers, hedge funds, FX brokers, market makers and authorised participants will be able to access multiple broker-dealers and exchanges via a unified gateway, resulting in a deeper pool of liquidity. Quantave says that it is now rigorously testing the model with its initial partners, while not naming them at this early stage.
To reassure investors that they can engage with this market with confidence, Quantave says its infrastructure incorporates independent, EU regulated intermediaries to provide a clear distinction between the ‘execution’ and ‘asset safeguarding’ functions to remove potential conflicts of interest.
Paul Gordon, CEO, Quantave, said: “Traditional markets have evolved with key roles isolated from each other with the objective of reducing risk and creating healthy competition. We aim to emulate this with our infrastructure. Both institutional investors and liquidity venues will benefit; investors will be able to transact confidently across multiple venues through independent asset safeguarding and execution functions, ultimately reducing risk. Liquidity venues will benefit from an increase in order-flow as investors are able to enter into the market via a proven channel. This is a very exciting time for this industry and marks a first step to accessing and unlocking liquidity in this increasingly sought after asset class.”