On November 28, 2023, Fireblocks, an innovative digital asset operations platform, announced the introduction of ‘Off Exchange’, a first-of-its-kind solution aiming to revolutionize the way institutional traders interact with digital asset exchanges. This groundbreaking platform is designed to mitigate the inherent counterparty risks that have long plagued the crypto trading market.
Exchange counterparty risk in digital assets trading encompasses a range of potential pitfalls, including the threat of cyber hacks, the risk of bankruptcy, and the potential for misappropriation of client funds. These risks are amplified in the crypto trading market due to the dual role of exchanges as both custodians and trading venues. Past incidents, such as the FTX collapse, have starkly highlighted these vulnerabilities.
Fireblocks’ Off Exchange platform represents a significant technological leap forward, employing multi-party computation (MPC)…
