The new Enclave Cross service will allow institutional investors to trade blocks of digital assets at a market price without information leakage, representatives of the exchange promise. The product is designed as an over-the-counter (OTC) dark pool of digital assets where traders make trades privately using smart contracts.
The main feature of trading transactions on the OTC platform is that they are concluded directly between the two parties, without the participation of a central counterparty. The agreement under which the transaction takes place differs from the standard contract for the sale of financial instruments on the stock exchange. The parties individually negotiate such conditions as the purchase or sale price, the type of instrument, any possible additions. Most often, OTC market participants agree on the terms of a deal by phone or through a bloomberg terminal.
“No one, not even the Enclave system administrator, knows the amount before the transaction is made. The new Enclave Cross service enables our users to maximize these benefits within a fully interoperable network. This is in line with one of the founding principles of cryptography: the concept of leveling the playing field,” explains Enclave Markets CEO David Wells.
Wells emphasized that Enclave Markets is focusing on institutional-level trading by offering a new service, combining centralized and decentralized elements.
So, all transactions are stored and executed offline. This means that competing market participants will see the results of the agreements only after the fact, when the funds are withdrawn from the platform. Enclave Cross also allows you to directly match traders with any interested counterparties without the need to exchange cryptocurrency wallet addresses.
Recently, the Financial Services Commission (FSC) of South Korea announced plans to launch a digital securities market to institutionalize and promote cryptocurrencies in the country.
Source: Bits
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