DeFinity partners with leading market infrastructure provider Cobalt to enable real-time FX clearing and dynamic credit management of digital asset trades


DeFinity, an institutional digital asset ECN and DeFi marketplace for fiat FX, Cryptocurrencies and Central Bank Digital Currencies, partners with Cobalt, a market infrastructure provider focused on re-engineering the institutional FX and digital asset markets to facilitate real-time clearing, settlement and dynamic risk and credit management.

Manu Choudhary, CEO and Co-founder of DeFinity, said, “Currently digital assets are at the identical point of evolution that Fiat FX was in the 1980’s with large bid/offer spreads, an absence of standardisation, insufficient segregation of duties, combined with inefficient and fragmented liquidity, which introduces far greater operational and systemic risk for participants. The partnership provides an enterprise solution for digital assets to interact with traditional FX counterparties with roles throughout the execution lifecycle – custody, execution, clearing, and settlement – clearly defined. Our vision is to establish DeFinity as a leading electronic communication network (ECN) delivering sustainable and non-fragmented digital asset liquidity to market participants is hugely enhanced by our partnership with Cobalt, not only because of their revolutionary clearing infrastructure, but due to the fact that some of the world’s largest banks and funds are already clients and investors. The asset custody or credit intermediation functions are kept at arms-length with trustworthy counterparties as inspired by the best practices of the global currency markets.”

Darren Coote, CEO of Cobalt, added, A significant number of financial institutions are eager to capitalise on the cryptocurrency expansion, but the lack of institutional-grade infrastructure limits investment opportunities. The prevailing settlement process is extremely manual, open to significant risks, and not adequate for institutional trading. Cobalt is one of the only firms providing critical market infrastructure in both digital assets and FX and our partnership with DeFinity will help to distribute our post trade solution to a broader demographic of institutional traders.”

The combined technology of both companies will enable clients to leverage the processes of capital markets for digital asset trading, creating a secure technical infrastructure by maintaining the legal confirmation of each transaction. DeFinity will allow institutional investors to retain independent custody pre-trade while providing a consolidated view of fiat and digital asset positions.

Michael Siwek, Chief Revenue Officer and co-founder of DeFinity Markets, concluded, “Institutional clients are excited to use our infrastructure to transact, record and settle trades efficiently utilising our proprietary blockchain to increase transparency and TCA capabilities, therefore boosting investor confidence materially.”

DeFinity and Cobalt are also jointly collaborating on further products and services, with shared synergies across a number of areas of innovation.


DeFinity announces European Family Office FX Settlement Collaboration


DeFinity, a decentralised finance (DeFi) marketplace for fiat foreign exchange, tokenised currencies, and central bank digital currencies (CBDC), engages with Montgomery Lake (UK) to enable a network of European family offices to implement a near real-time FX settlement ecosystem.

Montgomery’s existing technology infrastructure and investment in over-achieving FinTech businesses provides for a well-suited launchpad for Europe’s established family offices to take advantage of DeFinity’s FX settlement ecosystem.

Manu Choudhary, Chief Executive Officer of DeFinity, says: “We are excited to have partnered with Montgomery Lake at this time. This partnership will enable a range of family offices to settle and clear their foreign exchange deals with us.”

DeFinity is a layer-2 protocol and decentralised exchange solution that utilises existing blockchain frameworks, including WeOwn, Ethereum, Polkadot, Binance Smart Chain, and Cardano. With a focus on interoperability, the ambition is to create a more inclusive decentralised ecosystem that helps to bridge the old with the new.

Buy-side clients often face the issue of credit access wanting to trade on primary markets. The DeFinity solution enables clients and market makers to transact swiftly and efficiently, removing third-party intermediation fees.

I.J Piekarska, Managing Director of Montgomery Lake (UK), adds: “Our aim is to provide clients, shareholders, and stakeholders with long-term returns. We strive to connect our family office network with suitable technology solutions. DeFinity’s ambitious plans for the future and their innovative approach to resolving some of the biggest issues in FX (the largest financial market) has attracted interest from our underlying investors.”

The pilot project is to last twelve months during which a range of buy-side clients will participate in integrating its EMS and OMS systems with DeFinity, facilitating spot FX transactions. The collaboration aims to include NDFs and Forward contracts in the near future.

Florian Batliner-Staber, Chief Product Officer of DeFinity, concludes: “As part of our product development roadmap, we seek to engage in cross-border European regulatory conversations with central banks and authorities to create a harmonious and future-proof framework catering for transparency, financial inclusion, and market efficiencies that are currently being developed.”


DeFinity vanguard project to unveil decentralized FX settlement platform in 2021


DeFinity, a decentralised finance (DeFi) marketplace for fiat Foreign Exchange, tokenised currencies, and central bank digital currencies (CBDC), announces its intention to deliver a near real-time settlement ecosystem to help FX market participants settle their cash FX, forwards, swaps, and NDF transactions at a fraction of the cost of traditional routes.

DeFinity is a layer-2 protocol and decentralised exchange solution, utilising existing blockchain frameworks including WeOwn, Ethereum, Polkadot, Binance Smart Chain, and Cardano. With a focus on interoperability, the ambition is to create a more inclusive decentralised ecosystem that helps to bridge the old with the new.

Manu Choudhary, Chief Executive Officer of DeFinity, comments: “We hope to introduce settlement efficiencies into the traditional asset space that we believe will help established and under-capitalised market participants alike improve their service to clients, investors, pension funds, and their own bottom line in the case of proprietary trading firms and hedge funds.”

Michael Siwek, Chief Revenue Office of DeFinity, adds: “Over the last decade the FX market has evolved to offer reduced last-look times, technology that accurately measures market impact and information leakage combined with record-low order matching speed through state-of-the-art networks. The crucial aspect of credit is important to many participants that may not qualify for Tier 1 credit access. The DeFinity solution enables regulated retail and under-capitalised firms to access primary markets using the DeFinity settlement platform, which makes it an attractive solution in the $6.6 trillion daily FX market.”

Security being at the forefront of the platform, users are to benefit from the introduction of an Information Security Framework using ISO standard ISO/IEC 27001, certification, and assurance standardisation based on ISAE 3402.

Sascha Ragtschaa, Chief Technology Office at DeFinity, states: “The existing and proven technology introduces immediate transactions to the network and enables our market makers and clients to efficiently trade with each other to benefit the wider marketplace.”

Current and future regulation is at the heart of the DeFinity eco-system and its Central Bank Digital Currency offering. As such, the platform welcomes engagement with the FCA, The Bank of England, offshore Central Banks, and other relevant authorities to create a robust and future-proof service benefiting the market at large.