The Wall Street institutional-level Bitcoin exchange Coinsetter announced today that it will start offering select business customers margin trading and post-trade settlement.
In a press release sent to CoinReport, the company said this structure allows customers to trade without holding large balances on an exchange, mitigating their exposure to third-party risks. The new program also allows designated market makers to take short positions on Bitcoin.
In the wake of security breaches that, as Coinsetter stated in its release, “weaken the infrastructure of the bitcoin market,” the exchange is providing a new way to lessen risks for well-capitalized businesses, which is a group that comprises the majority of capital holdings on Bitcoin exchanges.
Coinsetter said that after depositing collateral in the form of Bitcoin, it will allow select companies to buy and sell the digital currency on margin, settling balances after trades are conducted. This model is aligned with the settlement method of exchanges in other Wall Street markets, said the release.
Coinsetter CEO Jaron Lukasiewicz said in the press release:
“We have been testing a post-trade settlement offering with select business customers in December, and its value is apparent. Coinsetter’s business customers, many of whom represent important institutions in the bitcoin space, can now access liquidity without having to worry about bitcoins being hacked or USD holdings becoming tied up. The program also helps growing companies reduce their working capital burdens.”
Lukasiewicz added that “the experienced team at Coinsetter is committed to providing clients with the most advanced bitcoin exchange in the world. The features announced today raise the bar even further.”
The exchange’s top priority remains security, said Lukasiewicz, noting that all users benefit from Coinsetter’s Securicoin© technology. According to Coinsetter’s website, the company uses such technology to provide enterprise Bitcoin security to its users.
“Through deep cold storage, human withdrawal reviews, and advanced multi-factor authentication, you can have comfort that your bitcoins on Coinsetter are safe,” says the website.
Image courtesy of Coinsetter