SIX Invests In Digital Asset Platform10.25.2019
SIBEX AG, the developer of the peer-to-peer protocol creating new arbitrage opportunities for institutional traders and eliminating the issues that exist with current OTC markets, has announced that it has raised CHF 1.78 million (€1.61 million) in its seed funding round. SIBEX received backing from China-based Fenbushi Capital; SIX, the Swiss financial infrastructure provider; and specialist blockchain investment Accomplice VC, among others.
The SIBEX peer-to-peer protocol and the SIBEX client leverage blockchain technology to remove intermediaries and enable professional traders to trade the world’s most popular crypto-assets with one another directly. Traders can choose between assets including Bitcoin, Ethereum, USDT, and ERC20 tokens and use the SIBEX client to trade them peer to peer. Unlike centralized exchanges, traders using SIBEX’s software maintain custody of their assets during trades.
Daniel Haudenschild, CEO of SIBEX, said, “People are rapidly realizing the value of trading digital assets, resulting in an inevitable shift towards the digitization of wealth. However, we’re still at an early stage in the development of this technology and the resulting lack of infrastructure for OTC trades can present issues which alienate institutional investors used to a certain quality of service. SIBEX is committed to solving the problems that exist while also exposing professional traders to a new world of trading strategies and opportunities. The support of Fenbushi Capital, SIX, Accomplice, and our other investment partners is invaluable in helping us to achieve this goal.”
By providing an institutional-grade dark pool for digital asset procurement and liquidation and enabling cross-chain transactions, the SIBEX protocol solves issues such as front-running, whereby those with advance knowledge of a large buy or sell order can manipulate the price of the asset and make a profit. By enabling traders to maintain custody of their assets throughout the trade settlement, SIBEX prevents such occurrences and increases market integrity. SIBEX is also a solution for OTC trading in commodities like oil and gold once trading in digital asset commodities grows.
Commenting on the investment, Bo Shen, Founding Partner, Fenbushi Capital, said, “We’re reaching a tipping point for institutional investor interest in digital assets trading. The right infrastructure for securely and privately trading large block orders is a vital piece of the puzzle, and the SIBEX protocol is the perfect solution to fill that space. We’re extremely excited to partner with SIBEX and assist in bringing the opportunities that this platform represents to traders around the globe.”
Rob Shavell, Partner, Accomplice VC, concluded, “Before OTC trading of digital assets can really take off and reach its full potential, institutions that are interested in entering the space need assurances of trust and stability in the peer-to-peer platform. SIBEX is taking the lead in making the vital shift to on-chain settlement in the ecosystem. Our investment is not only an endorsement of their first-class service, but also showcases the confidence we have in the technical prowess and capabilities of SIBEX’s team to create the gold-standard for the peer-to-peer trading protocol of the future.”
Regulators are likely to separate custody from other crypto exchange activities.
Financial institutions can shorten the lifecycle of blockchain projects to just a few weeks.
Kurz said there are walls between the digital asset fund management business and the trading arm.
The CFTC regulated derivatives market and clearer was not included in FTX's bankruptcy filing.
The sovereign wealth fund said the investment was 0.09% of its net portfolio value.