Fireblocks Introduces 'Off Exchange' to Address Exchange Counterparty Risk, Integrates with Deribit
On November 28, 2023, Fireblocks, an innovative digital asset operations platform, announced the introduction of 'Off Exchange', a first-of-its-kind solution aiming to revolutionize the way institutional traders interact with digital asset exchanges. This groundbreaking platform is designed to mitigate the inherent counterparty risks that have long plagued the crypto trading market.
Exchange counterparty risk in digital assets trading encompasses a range of potential pitfalls, including the threat of cyber hacks, the risk of bankruptcy, and the potential for misappropriation of client funds. These risks are amplified in the crypto trading market due to the dual role of exchanges as both custodians and trading venues. Past incidents, such as the FTX collapse, have starkly highlighted these vulnerabilities.
Fireblocks' Off Exchange platform represents a significant technological leap forward, employing multi-party computation (MPC) technology. This innovative approach enables traders to directly trade on centralized exchanges from a shared, on-chain MPC wallet. The shared wallet model ensures that traders maintain control over their assets, significantly reducing the risk of loss due to exchange-related issues like hacks, bankruptcy, and fraud.
The integration of Fireblocks Off Exchange with Deribit, a leading digital asset derivatives trading platform, marks a significant milestone in the journey towards more secure and efficient digital asset trading. This collaboration signifies the increasing recognition of the need for enhanced security measures in the burgeoning field of digital asset derivatives.
Fireblocks Off Exchange promises several key benefits for the trading community. Firstly, it offers enhanced security
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