Cobalt Expands Into Digital Assets
Over the last few years, the foreign-exchange (FX) post-trade infrastructure provider Cobalt has designed and built a secure 24/7 middle office platform, which it is delivering for some of the industryâ€™s largest participants.
One of the sizeable changes in the market over the past few years is the rise of digital assets and how they are making their way into the forefront of currency trading. This trend has been accelerated by the decision of the OCC (US Banking Regulator) to allow US banks to hold digital assets. Major FX institutions are now looking to trade digital assets, yet enterprise standard post-trade infrastructure in this market is virtually non-existent.
For these participants to enter this market at scale it is critical to ensure the correct management of credit and data, to which end Cobalt is now bringing its innovative post-trade and credit FX solutions to the digital asset market.
Cobalt is already connecting to the leading digital exchanges on behalf of clients and offering full credit and ledger services for all currencies and digital assets. Cobalt clients are able to see their full portfolio of positions and risk across both fiat currencies and digital assets, available to clients across all segments. Cobaltâ€™s middle office platform is used by the FX markets leading Prime Brokers, Liquidity Providers, Retail Brokers and Exchanges
With a full micro service architecture and 24/7 operations, Cobaltâ€™s solution is fully compliant with the FX Global Code and Tier 1 financial participants information security and regulatory requirements.
As part of an increased focus on clients looking to trade FX and Digital Assets, Aiyana Currie has joined the company as Head of North American Sales. Aiyana is an FX sales and product specialist with 20 yearsâ€™ experience held in senior EFX positions at Morgan Stanley and UBS.
Adrian Patten Chairman and Co-founder of Cobalt said, â€śThe rise of digital assets has gone from strength to strength in the past years and has moved from being an asset traded on the periphery, to being at the forefront of FX participant plans.”
â€śParticipants today can no longer ignore the position of digital assets in the market and those who do are in danger of missing out on sizeable trading opportunities due to the 24/7 nature of the market. Major exchanges have started to translate this to the FX market, with some offering trading over the weekends. 24/7 operability has always been a priority to Cobalt. As digital assets continue their rise and influence over the FX market, participants are going to need to adapt to new ways of doing business.â€ť
SEC Chair stresses that virtual products are implicated by securities laws.
Institutional investors are expecting more services from digital asset custodians.
Investigation phase will last 24 months.
Blockchain-based assets require an upgrade in post-trade settlement and clearing infrastructure.
The registry mirrors the use of ISINs and UPIs for digital assets.