Cryptocurrency exchange Bitstamp has tapped financial technology solutions provider Cinnober to replace its in-house matching system, which will make for speedier completion of trades.
Bitstamp Chief Technology Officer David Osojnik, in a press release, said that he expected the platform’s order matching speed to become 1,250 times faster than at present, with throughput increasing 400 times. “While Bitstamp’s matching engine was already very good by crypto standards, this will put us in the same league as traditional exchanges with decades of experience,” he said.
Implementation of the new matching engine, which will use Cinnober’s TRADExpress Trading System, will be in several phases, beginning in the first quarter of 2019, with full implementation targeted by the second quarter.
Bitstamp CEO Nejc Kodrič said, “This is a crucial step on our mission to bridge the gap between crypto and traditional finance. Our matching engine will be on par with traditional exchanges in both speed and throughput, once again placing Bitstamp on the technological frontier of crypto trading.”
Just last week, Bitstamp announced it had been acquired by investment firm NXMH, which will hold an 80% stake in the exchange. Last September, Nasdaq announced its public offer to acquire Cinnober for $190 million.
Cinnober, in its statement, said the new trading system will allow Bitstamp to meet demands even as the cryptocurrency market grows further. Cinnober Group CEO Peter Lenardos said, “By upgrading their trading technology to further improve performance and stability as interest from investors and regulators grow, [Bitstamp] demonstrate[s] their firm commitment to providing a safe and reliable marketplace.”
Among Cinnober’s existing clients are the Australian Securities Exchange, Brazil-based B3, the Dubai Gold & Commodities Exchange, Euronext, Japan Exchange Group, the London Metal Exchange, the Johannesburg Stock Exchange, and the Stock Exchange of Thailand.
Last month, Cinnober partnered with cryptocurrency payment solutions provider GAP600 to enable instant confirmation of cryptocurrency transactions on exchanges. The value-added functionality uses a risk engine that determines the risk involved with each transaction, and guarantees payments via an underwriter.
Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.
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Swedish financial technology company Cinnober has partnered with cryptocurrency payment solutions provider GAP600 to enable instant confirmation of cryptocurrency transactions on exchanges, according to a press release.
The instant cryptocurrency transactions functionality will be available as an add-on to Cinnober’s cryptocurrency offering for exchanges.
Eric Wall, Cinnober Cryptocurrency and Blockchain Lead, said, “GAP600’s instant confirmation service removes the lag time associated with cryptocurrency deposit transactions between users and exchanges. Such transactions can take 60 minutes or more until they are visible in the user’s trading account. Due to the volatility in the cryptocurrency markets, the value of the assets can change significantly during this time. This problem is removed with GAP600’s service.”
Instant confirmations are made possible by GAP600’s proprietary risk engine, which determines the risk involved with each transaction. Furthermore, cryptocurrency payments are guaranteed through an underwriter, even before a transaction is included in the blockchain.
GAP600 co-founder and CEO Daniel Lipshitz said, “GAP600 is easily integrated, which means the instant payment transaction functionality is ready to go live on the Cinnober platform, offered as a value-added feature to Cinnober customers. Offering this functionality will significantly improve the cryptocurrency exchange value proposition.”
Cinnober Group CEO Peter K. Lenardos noted how delays in confirming cryptocurrency transactions has been a significant concern for traders. “The current lag time for transactions over the blockchain is a major pain point for those trading cryptocurrencies. Being able to offer instant transaction functionality will help our clients improve their competitive advantage in the cryptocurrency exchange space,” he said.
For Bitcoin Cash (BCH) transactions, the new service will be offered on top of instantly verified transactions that allow users to spend amounts that have just been transferred to one’s wallet, almost instantaneously.
Last September, stock exchange company Nasdaq announced its plan to purchase Cinnober through a $190 million all-cash recommended public offer. The move is intended to allow Nasdaq to increase its presence in the cryptocurrency sphere. With Cinnober as strategic partner to cryptocurrency custodian BitGo, the acquisition will allow Nasdaq to venture into custody services using an already regulated entity.
Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.
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Nasdaq is set to acquire Sweden-based trading solutions provider Cinnober, in a deal that could see the stock exchange move into helping institutional investors gain access to new opportunities around cryptocurrency.
The move, announced last week, involves a $190 million all cash recommended public offer to Cinnober shareholders and warrant holders from Nasdaq. It plans to fund the acquisition with cash on hand or liquidity available under existing credit facilities.
It comes as the latest indication of Nasdaq’s growing interest in cryptocurrency trading and related services. Following the U.S. Securities and Exchange Commission’s (SEC) rejection of the latest Winklevoss crypto exchange traded fund (ETF) proposals, Nasdaq reportedly met with a panel of cryptocurrency experts to discuss ways of legitimising the sector, and of finding ways to placate the requirements of the SEC.
The acquisition will see Nasdaq take control of Cinnober, a firm with a reputation for bullishness around digital assets. Cinnober’s strategic partnership with cryptocurrency custodian BitGo also looks to be of interest to Nasdaq, for its appeal to institutional investors.
Custodianship has become an increasingly prominent issue amongst institutional investors, who are wary of deploying capital without solid security and custodial services in place.
With recent high profile hacks, including the Bancor exchange attack in June, some analysts have suggested these fears might be well placed. With its cryptocurrency custody service ready to go for institutional investors, the Cinnober acquisition therefore eliminates this barrier to market for Nasdaq in attracting institutional clients to invest in digital assets.
Nasdaq CEO and President Adena Friedman said the acquisition would allow the group to capitalise on new opportunities around cryptocurrencies and other digital assets.
“The combined intellectual capital, technology competence and capabilities of Cinnober and our Market Technology business will expand the breadth and depth of our fastest growing division at Nasdaq,” Friedman said in a statement. “This acquisition will enhance our ability to serve market infrastructure operators worldwide, and will accelerate our ability to expand into new growth segments.”
The acquisition comes at a time when large financial institutions are increasingly developing their custody services, with Bank of America and Citigroup announcing similar plans in recent months. Purchasing Cinnober will likely help position Nasdaq in this market, as well as marking their progress towards offering a more comprehensive lineup of crypto services.
Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.
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