FX post-trade infrastructure provider Cobalt is extending its service into the digital assets space to meet growing demand for the service and also as a result of digital assets becoming more entwined with the foreign exchange market.
Cobalt says this trend has been accelerated by the decision of US banking regulator OCC (Office of the Comptroller of Currency) to allow US banks to hold digital assets, adding this has led major FX institutions to look into trade digital assets, however it observes that enterprise standard post-trade infrastructure in this market is “virtually non-existent”.
For institutional participants to enter the digital assets market at scale, Cobalt argues it is critical to ensure the correct management of credit and data, to which end it is now bringing its post-trade and credit FX solutions to the digital asset market.
The firm 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.
With a full micro service architecture and 24/7 operations, Cobalt says its 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. She is an FX sales and product specialist with 20 years’ experience held in senior e-FX positions at Morgan Stanley and UBS.
“The 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,” says Adrian Patten chairman and co-founder of Cobalt. “Participants 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,” he continues. “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.”