As more financial services firms look for ways to utilise blockchain technology within their infrastructures, Galen Stops examines whether the technology is really as safe as advocates claim, following two high-profile hacks earlier this year.
“Cyber and system security is one of the most important issues facing markets today in terms of integrity and financial stability,” said Commissioner Christopher Giancarlo of the Commodity Futures Trading Commission (CFTC) on September 8, when approving system safeguard requirements for derivatives clearing organisations.
Giancarlo is hardly alone in his concerns.
Swiss-based Market Synergy, a new business formed as part of the FXecosystem group, says it is now offering connectivity to cryptocurrency exchange Bitfinex.
In addition to providing outsourced connectivity and hosting services to Bitfinex, Market Synergy says it can also manage co-location services for Bitfinex’s institutional clients and offer a FIX feed and ISP link to the digital asset gateway which Bitfinex recently launched in collaboration with Connamara.
The firm says as the demand for cryptocurrency trading gathers momentum, it spotted a gap in the market for an institutional calibre cryptocurrency connectivity offering.