Bitcoin derivatives exchange Crypto Facilities and Bitcoin analytics and security start-up Elliptic announced the launch of a settlement and clearing option aimed at separating bitcoin custody from all other exchange functions. Typically, client assets are controlled by the exchange without any chance to and to be audited externally. The brand-new solution will help overcome this setup.
According to BusinessWire, Crypto Facilities’ client accounts are now hosted in Elliptic’s secure, KPMG-accredited vaults and are fully insured by an A-rated, Fortune 100 underwriter. Each client has their own segregated account which is settled on the blockchain every day. The customers can see all the movements in the account. Plus, they can be independently verified on the blockchain.
Both companies are based in London. Backed by Octopus Ventures, Elliptic provides bitcoin analytics and security services for the enterprise. Moreover, the company was the world’s first bitcoin firm to secure insurance for bitcoin assets, and to be accredited by KPMG. Elliptic is the founding member of the UK Digital Currency Association. The association collaborates with the UK government shaping regulatory framework for digital currencies.
James Smith, CEO of Elliptic, commented the brand-new partnership:
“Our mission is to bring confidence and certainty to bitcoin. This deep integration of our two firms is an essential step towards enterprise-scale bitcoin trading. With Crypto Facilities’ strong and robust trading infrastructure, we expect trade in bitcoin derivatives will flourish, improving bitcoin’s price stability and driving enterprise adoption.”
As for Crypto Facilities, the firm provides financial services, risk management and trading solutions around digital assets such as bitcoin. The founders of the company is Jean-Christophe Laruelle, a former Senior Trading Architecture Designer at BNP Paribas/Société Générale, and Timo Schlaefer, a former Executive Director in Credit Quantitative Modelling at Goldman Sachs.
Jean-Christophe Laruelle said: “Capital markets would never entertain the idea of having an exchange hold assets or of pooling funds together. The history of high profile hacks has demonstrated that this is not a solution for the bitcoin space either. With Elliptic we have found the ideal partner to define a whole new benchmark for bitcoin clearing and custody.”
“This is a watershed moment for bitcoin trading,” added Timo Schlaefer. “Experienced market participants will immediately recognize that we have done away with one of the biggest risk factors in the bitcoin ecosystem.”
Crypto Facilities was launched earlier this year and became popular really fast. The new solution is available immediately and comes with a complete re-launch of Crypto Facilities’ trading interface.