Pure Digital has successfully executed a live test trade on its wholesale digital currency trading platform, leveraging Zodia Custody, the crypto-custody provider incubated by the innovation arm of Standard Chartered, with Northern Trust as a co-investor.
Pure Digital is an OTC marketplace for digital currencies with physical delivery routed to bank-grade custodians. The marketplace is fully automated and has a high throughput.
Bilateral credit will be used to trade on the platform by institutional participants, enabling counterparty control for all trading participants, and creating increased capital efficiency, establishing a robust market for price discovery and exchange of risk.
Last year, Pure Digital and Zodia Custody signed a Memorandum of Understanding with the intention of working together, with Zodia agreeing to provide bank-grade crypto-custody services to Pure Digital.
When Pure Digital launches, it will be multi-custodial, giving trading participants the choice to leverage their preferred digital currency custody solutions and manage risk through a custody routing mechanism.
Subject to regulatory approval, wholesale participants will be able to trade on Pure Digital through their existing prime bank and custodial relationships using pre- and post-trade infrastructure provided by Zodia Custody.
State Street’s Currenex trading technology will be deployed by the platform to deliver industry-standard infrastructure and best execution to minimise technology costs for bank participants.
“Collaboration between custodian and marketplaces is key in developing a sophisticated cryptoasset market that meets institutional requirements and standards. Through Zodia’s partnerships with trading venues like Pure Digital we are able to build an ecosystem that satisfies institutional investors’ need for segregation of duties and asset safety within bank-grade custodial infrastructure,” said Maxime De-Guillebon, CEO, Zodia.