Cryptocurrency clearinghouse Mint Exchange launched yesterday to let FX brokers, hedge funds and institutions trade cryptocurrencies across all major exchanges, brokers and markers, on a single gateway and account.
Not so many clearinghouses operate for cryptocurrency, but the new one will join a few other clearinghouse exchanges such as Digital Asset Exchange (DAEX), which works runs on blockchain and has its own network token.
In addition to advantages such as providing custody for institutional investors, more liquidity and a larger market for crypto traders, cryptocurrency clearinghouses can provide ability to access best matching prices across many exchanges for sales and purchases, and are advantageous in the fact that users will not need to rely on centralized exchanges to hold and store their funds. Holding transactions on blockchain means they are much more secure than centralized exchanges.
That said, Mint Exchange, like DAEX, will let institutions to trade digital currencies on all major crypto exchanges without moving the market. That means it matches orders from across the exchanges but within the platform rather than working like a single exchange that matches orders from only its users.
Mint will also let FX brokers, asset managers and institutions to manage and trade crypto securely from a single account. Chairman of Mint Exchange Harpal Sandhu said the exchange is the 'trusted, robust, professional-grade exchange' with the ability to trade crypto from a single secure location, which is what many FX brokers, asset managers, and institutions have been waiting for to enter the crypto market.
Built on the Integral FX platform that processes $40 billion/day in fiat currency trading from more than 200 financial institutions, including Bank of America, Citi, UBS, Wells Fargo and others, the platform will also help to solve liquidity problems for crypto institutional traders. It will also provide custody services and risk management tools to traders.
Mint exchange is already being used by top global FX brokers to trade cryptocurrencies according to their yesterday's press release. Individual traders can also access the exchange by opening an account with a Mint Exchange broker. Managing Director of Mint Exchange Masato Kikuchi said that they were confident that Integral would handle their cryptocurrency volumes given the high volume of fiat currency trading. He said they decided to build the exchange on the platform given its "history of innovation and reliability."
Integral platform features the Open Currency Exchange trading platform started in 2015, which integrated some digital cryptocurrencies in late 2017. It then expanded to include 14 different virtual coins to bring the total to 16.
Therefore, unlike DAEX, they are launching on a platform familiar with FX trading and crypto trading, and with many partnerships already. This means it exposes more users in traditional financing to crypto markets while providing more liquidity to its customers.
One of the launch partners of Mint Exchange, JST Systems, said that through their working with the Exchange, they are now able to afford the liquidity, stability and security necessary to provide the level of service their customers expect. He said liquidity providers would need "sophisticated technology and risk management tools" to service institutional players as more institutional players enter the cryptocurrency market.
DAEX is based on a decentralized clearing and settlement ecosystem based on Distributed Ledger Technology [DLT] which connects different cryptocurrency exchanges and acts as a custodian for multiple digital assets.
However, in addition to allowing direct enterprise-level customers, DAEX also directly allows individual customers to trade on the exchange. As said earlier, Mint will allow access to individuals through brokers. DAEX uses a blockchain that supports cross-chain clearing of assets. It is already partnering with cryptoexchanges Lbank, BCEX, Allcoin, Indodax, and Tokenomy. It also features own economy token.