Ledger, a leading crypto custody firm, has launched a new service to help institutions manage crypto trading risk and regulation with custodial trading solutions. Ledger Enterprise TRADELINK is a revolutionary trading and settlement network technology that enables custodial trading via an exchange and custodial partners. It also allows enterprises to distribute risk across multiple custodians.
How Does Ledger TRADELINK Work?
Investors are learning a lot from the failures of several crypto companies. For example, the collapse of FTX has shown that a centralized exchange poses so many risks because only one company acts as the custodian, broker, and technology provider, creating a single point of failure and vulnerability. This single point of failure is what Ledger is trying to address. It does this by distributing the risk among several curated counterparties while at the same time providing security for the transactions.
Ledger Enterprise TRADELINK provides the platform and the “introduction” to the custodians and exchanges. It also provides the governance framework and the technology infrastructure to facilitate crypto trading and settlement.
The separation of roles as exchange, custodian, and broker is also a good way of steering away from regulatory scrutiny. Another company adopted this approach; the newly launched EDX Markets does not hold its customer’s asset’s but instead uses a third-party custodian for this job.
Benefits of Using Ledger TRADELINK
According to Ledger, below are the benefits of using the platform.
- Off-exchange trading. Ledger promises security while accessing exchanges and OTC (over-the-counter) brokers like Crypto.com, Bitstamp, Huobi, and others.
- Enhanced security and transparency. Ledger uses a fully transparent technology that enables real-time tracking of collateral balances and operational status for all stakeholders.
- Distribution of Risk. Fund Managers can distribute risk to multiple custodial partners.
- Streamlined operations. Fund Managers can leverage Ledger’s turnkey technology infrastructure to manage and execute crypto settlements.
- Zero Transaction Fees. According to the company, “Ledger will not charge transaction fees, ensuring predictable operational costs and effortless budgeting to simplify your financial planning process.”
- Faster and More Efficient Trading. Managers can keep assets in their chosen custodians and save time and money from doing multiple transactions. Enjoy lower transaction fees and an 80% faster process by avoiding moving assets across different exchanges.
The Crypto Industry Keeps on Building
The crypto industry has seen a lot of negative events in 2022 and 2023, but this did not stop Ledger from rolling out a new enterprise solution. This is a good sign because targeting big institutions is a good way to increase adoption. Financial Giants are currently starting a crypto gold rush, and Ledger TRADELINK has positioned itself as a promising platform for these institutions. Its multi-party approach addresses issues surrounding crypto companies taking the role of both broker and asset custodian. This approach, together with Ledger’s experience in securing digital assets, would provide a more secure, efficient, and compliant way of trading crypto for enterprises.
Source: Ledger TRADELINK
Featured Image: Unsplash
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