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Digital Coin Exchange Bitfinex is Wooing Institutions

Digital Coin Exchange Bitfinex Is Wooing Institutions

Bitfinex, a popular virtual currency exchange, is trying to woo institutions to look at the cryptocurrency market as an option for investment. For this purpose, the exchange has roped in Market Synergy GmbH to offer not only strong but also high-performance connectivity to its clients. The Swiss-based firm is known to provide security coverage for banks through institutional connectivity with the help of a bespoke network solution. This will be a key factor in the digital coin segment since it would ease the connectivity fragmentation.

Centralized Sources

Market Synergy has a solution known as Meet-Me-Rooms (MMR) where it offers centralized sources of digital coin connectivity to various sectors. This included hedge funds, brokers, banks and virtual currency exchanges, reported. The company has also disclosed that it has created a network solution for Bitfinex. The network is hosted from a data center based in Switzerland, and it is called as the Crypto Valley. The security firm indicated that it would take care of managing the services of co-location too to cover institutional clients for the virtual asset exchanges.

In addition to offering hosted services and outsourced connectivity, Market Synergy would provide a FIX feed so that Bitfinex could link its recently introduced cryptocurrency gateway. These steps were initiated after the company has worked closely with the digital currency exchange to find out their requirements. Its CEO, James Banister, indicated that this had enabled it to select an ideal data center. This apart, it’s close to working also helped to establish the right kind of infrastructure to develop a bespoke network.

The CEO disclosed that this move would offer connectivity to the gateway of a virtual asset to help professional traders. Banister said, “We are now ready to go live, having invested in and set up our infrastructure in a secure data center in Switzerland which hosts servers for a number of major financial institutions. We can also offer colocation services to any Bitfinex institutional client.”

The company is closely linked with institutions because of its attachment with FXecosystem Group. The group consists of Bondecosystem and FXecosystem, and they enjoy their position in their respective class of assets. However, both are considered as institutional market leaders as far as the outsourced connectivity is concerned. That augurs well for the digital coin exchange since they know the mindset of institutions.

Improved Access

For its part, Bitfinex CTO, Paolo Ardoino, expressed his hope that its alliance with Market Synergy would allow enhanced access to crypto assets through the exchange. He indicated that the exchange is witnessing a firsthand experience of enormous interest coming from institutions in respect of digital coin trading. Therefore, he said that the company wants to tap it and be a pioneer in developing a solution.

Institutions are key to improve the volume of trading in virtual currencies. Until now, there has not been sufficient interest coming from them for different reasons. This included the ongoing regulatory pressures on both crypto exchanges, as well as, the virtual assets since most of them eclipse after three or four months of their initial coin offerings (ICOs).

About the author


Leon Gaban

Leon is a FullStack Developer, Cryptocurrency Investor, Global Citizen who wandered into Blockstream, and is currently trying to produce a prototype and spec for bitcoin lightning. To know more about Leon, follow him on Twitter.

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