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Bybit improves trade security with Fireblocks' Off Exchange solution

Wednesday 19 June 2024 10:42 CET | News

Cryptocurrency exchange Bybit has announced the adoption of Fireblocks' Off Exchange solution to mitigate counterparty risk for institutional trades.

 

Fireblocks, an enterprise platform for managing digital asset operations, employs multiparty computation (MPC) technology through Off Exchange. This technology allows institutional traders to execute trades on centralised exchanges directly from a shared MPC wallet on-chain thus protecting assets from risks such as hacks, bankruptcy, and fraud.

According to the official press release, Fireblocks Network, where Off Exchange operates, facilitated transactions exceeding USD 200 billion among institutional traders and over 30 connected exchanges. Bybit's integration of Off Exchange aims to improve security protocols for institutional clients by ensuring transparency and full collateralisation of client accounts on-chain.

 

Cryptocurrency exchange Bybit has announced the adoption of Fireblocks' Off Exchange solution to mitigate counterparty risk for institutional trades.

 

A closer look at Off Exchange 

Some of the main benefits of Fireblocks Off Exchange include asset protection through programmatically locked MPC wallets, real-time settlement capabilities on the blockchain, and flexibility for traders to withdraw assets to other venues or wallets after rebalancing their collateral vault accounts (CVAs). The system was designed to improve liquidity and trading efficiency while also providing transparency and traceability without requiring custody of client assets.

Representatives from Bybit emphasised the importance of security and transparency in institutional trading, noting that the integration reinforces trust and confidence among customers.

Fireblocks officials highlighted the platform's role in providing direct connectivity to numerous liquidity partners and counterparties, supporting efficient trading operations through technologies like Off Exchange. Other Bybit initiatives designed to prioritise institutional asset safety include the Asset Management Account, aiming to deliver a robust trading experience for institutional clients.


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Keywords: partnership, risk management, cryptocurrency exchange, trade finance
Categories: DeFi & Crypto & Web3
Companies: Bybit, Fireblocks
Countries: United Arab Emirates
This article is part of category

DeFi & Crypto & Web3

Bybit

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Fireblocks

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