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Cumberland, the cryptocurrency market maker, is modernizing the way it treats OTC transactions with its customers.
Announced Tuesday, the unit of financial trade giant DRW unveiled a platform to a distributor called Marea, allowing institutional investors to interact with Cumberland via a screen interface, rather than negotiating transactions through phone or Skype.
As such, the new portal aligns Cumberland on how OTC transactions have been done on Wall Street for over a decade on traditional badet clbades such as stocks.
"This is a single dealership platform and a way for our counterparties to interact with our markets, execute them and also view their trading history via a platform," he said. Bobby Cho, Global Head of Transactions at Cumberland, adding:
"We looked at what other badet clbades have done in the past. It was an evolution from one voice to another on screens. "
For starters, the new OTC platform will support trading of 10 popular cryptocurrencies and will also interact with back-office reports, effectively managed through a collaboration with the specialist transaction reports, MG Stover.
The initial 10 pairs of markets include zcash, Sterllar lumens and the stablecoin linked to the US dollar TrueUSD, then the plan is to offer the other parts traded by Cumberland, said Cho.
"We hope to extend this to all the coins we are trading here, so more than 40 coins, and then to the different settlement currencies we also install – dollars, Swiss francs, euros, GBP and other similar currencies. ," he said.
"So it's a little different from the exchanges where you are settled on what the exchange offers you from the point of view of the order book. In In the future, we hope this will allow our counterparties to exchange any badets we allow against any currency or other crypto we offer. "
Research and back office
The research that Cumberland began producing in-house last year was also added to the portal, said Cho.
Meanwhile, Marea integrates back-office transaction reports and close-up positions at the end of the day, Cho said, "whether it's via a downloadable spreadsheet or via the user interface."
His team was not going to try to create a complete solution for the front and back office in a silo, noted Cho.
To facilitate the process, third-party fund administrators, such as: MG Stover, which currently manages more than 80 hedge funds dedicated to cryptography.
Matt Stover, CEO of MG Stover, said that this involved simple concepts, such as obtaining a dated transaction confirmation with the correct quantity, and ensuring that the funds have the appropriate books and records.
"We are taking advantage of best practices in administering private funds and applying them to digital badets," he said. "We are really trying to institutionalize the digital resource space."
Image of Bobby Cho via CoinDesk Consensus Archives
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