Kategorie: Crypto Markets

• OKX teams up with Komainu and CoinShares for institutional asset trading.
• CoinShares trades on OKX, while Komainu safeguards assets, mitigating counterparty risks.
• The collaboration establishes a legally robust mechanism, enhancing the reliability of institutional transactions.

In a strategic move aimed at fostering institutional adoption of digital assets, cryptocurrency exchange OKX has entered into a partnership with custody provider Komainu and asset manager CoinShares.

This collaboration, designed to facilitate round-the-clock trading of segregated assets, addresses a crucial concern for institutional traders—counterparty risks.

The partnership comes right on the heels of another OKX partnership with Polygon that saw OKX launch a ZK-powered L2 network built with Polygon CDK.

Mitigating counterparty risks with a traditional touch

In this innovative partnership, CoinShares will execute trades on the OKX exchange, while Komainu, functioning as a third-party custody provider, safeguards the collateral assets. The segregation of assets and the involvement of trusted custodians aim to mitigate counterparty risks, providing institutional traders with a level of assurance mirroring traditional financial market practices.

According to Sebastian Widmann, head of strategy at Komainu, this step is essential to attract institutions to adopt digital assets. By acting as independent, trusted, and regulated custodians for collateral assets, Komainu seeks to instil confidence in institutional clients throughout their trading lifecycle.

Lennix Lai, Chief Commercial Officer at OKX, emphasizes that while secure custody solutions, regulatory frameworks, and deepening exchange liquidity are in place, counterparty risk remains a significant hurdle for institutional traders. The collaboration aims to provide a legally robust mechanism for the mutual management of assets, demonstrating expertise in negotiating complex tripartite agreements covering collateral, security, and legal risks—critical aspects for institutional investors.

This partnership aligns with the ongoing trend in the crypto industry, focusing on enhancing infrastructure and risk management practices to attract traditional finance investors. As institutional interest continues to grow, initiatives like these contribute to creating a more reliable landscape for institutional transactions in the digital asset space.

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• OKX is collaborating with Polygon Labs to launch a new ZK-powered layer 2 network.
• X1 will become OKX’s native network and utilise OKB for gas fees.
• OKX also joins other platforms as a core contributor of the Polygon CDK.

OKX and Polygon Labs are collaborating on a new zero knowledge-powered layer 2 network, whose testnet was announced today.

The Ethereum-based ZK network is built using the Polygon Chain Development Kit (CDK) and utilise the native OKX token OKB for gas fees. X1 becomes OKX’s new native network, the firm said in an announcement.

📣 Hot Off The Press 📣

We’re thrilled to introduce #X1, our new Ethereum L2 network built on Polygon’s CDK.

Our landmark collab. with @0xPolygonLabs empowers next gen. devs. with increased security, scalability & low transaction costs to BUIDL the future of Web3.

🧵👇 pic.twitter.com/Wkz11vu2be

— OKX (@okx) November 14, 2023

OKX becomes core contributor to Polygon CDK

As part of the partnership, OKX becomes a core contributor to the Polygon CDK. Other than that, the crypto exchange will invest its engineering resources in developing “the technology stack for Ethereum scaling solutions.”

“X1 will be a key pillar of our efforts to educate and bring our users on-chain and into the world of Web3. This scalable and accessible network is perfect for developers, who can build on X1 to deliver user-friendly world-class consumer Web3 applications, all while maintaining interoperability with other networks and ecosystems,” said Jason Lau, OKX’s chief innovation officer.

“By collaborating with Polygon Labs, we look to bring more builders, more use cases, and ultimately the mass adoption of Web3,” he added.

Polygon Labs unveiled the Polygon CDK for ZK-powered L2 chains on Ethereum in late August, promising developers and enterprises more scalability and unified liquidity.

Some of the blockchain platforms and firms looking to tap into the technology include Astar, Canto, Gnosis Pay, and IDEX.

The post OKX launches ZK-powered L2 network built with Polygon CDK appeared first on CoinJournal.

• BGX, the company that runs BitgetX in Hong Kong, has agreed a $90 million investment in BC Technology.
• BC Technology is the parent company of OSL, a publicly listed crypto exchange trading on the Hong Kong Stock Exchange.
• BitgetX announced it would not pursue regulatory registration and licensing in Hong Kong.

BC Technology Group, the company behind the crypto exchange OSL, has agreed to a strategic investment from BGX, the crypto operator of the BitgetX platform.

The news development was shared via a press release BC Technology published on Tuesday, November 14. 

BGX invests $90 in OSL

Details indicate that the BGX investment involves a subscription for shares in the OSL parent company to the tune of HK$710 million (approximately $90 million.)

“Our investment in BC Technology Group and OSL is a strategic move that reflects our belief in the immense potential of the digital asset market,” said Patrick Pan, CEO of BGX. “We are confident that this partnership will not only strengthen BGX’s global presence but also enhance the growth trajectory of the digital asset industry,” he added.

While the strategic subscription for shares has been agreed, these will be undertaken under a specific mandate. That will be after an approval from the BC Technology shareholders. 

🚀 Big news at #OSL! Our parent, @bctechgroup, has just announced a strategic investment of HK$710 million from BGX.

📈 Here’s the scoop:
– Fueling M&A in digital asset and blockchain sectors.
– Enhancing our digital asset platform technology.
– Supporting capital needs of our… https://t.co/dk9oSkXvcS

— OSL (@osldotcom) November 14, 2023

BitgetX to halt operations

OSL, a wholly-owned subsidiary of BC Technology, was the first digital assets exchange to receive regulatory approval from Hong Kong’s Securities and Futures Commission (SFC).

Today’s announcement comes a day after BitgetX, the Hong Kong crypto platform of BGX, notified its customers of plans to halt operations by December 13. The exchange will not pursue a licence from SFC.

BC Technology also asked the Stock Exchange of Hong Kong to halt trading of OSL shares in view of a business deal. The Bitget announcement also put its decision to the same consideration.

The price of Bitget Token (BGB) rose sharply after the news to trade at an all-time high of $0.58.

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• dYdX Chain Beta Mainnet launch enables active trading across 33 markets.
• Users can trade on dydx.trade with 20x leverage.
• There will however be no rewards during the beta stage.

In a significant development for the decentralized derivatives trading space, the dYdX Chain has officially entered its beta mainnet stage.

This move follows a decisive governance vote, with over 99% community support, allowing active trading across more than 33 markets.

Beta Mainnet launch and trading features

The transition from the alpha stage to the beta mainnet stage occurred at 8:45 a.m. EST on a Monday, as confirmed by the dYdX Operations subDAO, responsible for the decentralized infrastructure of the dYdX Chain.

Users can now actively participate in trading via the dydx.trade platform, with access to over 33 perpetual markets offering up to 20x leverage.

During this beta stage, no trading rewards will be distributed to users. However, validators and stakers will accrue trading fees. This phase serves as a critical testing period for the active trading environment on the dYdX Chain.

Evolution from Ethereum Layer 2 scaling to Cosmos-based blockchain

The dYdX Chain’s journey to this point involved a notable shift from its reliance on Ethereum Layer 2 scaling solution StarkEx in version 3 to becoming a standalone Layer 1 blockchain on the Cosmos ecosystem with the launch of version 4. The alpha mainnet for dYdX version 4 and the debut of its Cosmos-based blockchain took place on October 26.

The dYdX platform, renowned as the most extensive decentralized derivatives trading platform in the crypto space, has seen a cumulative trading volume exceeding $1 trillion since 2020. The successful governance vote and subsequent beta mainnet launch mark a crucial step in dYdX’s ongoing commitment to providing a robust and efficient decentralized trading experience.

This news underscores the platform’s focus on community-driven decision-making and its dedication to refining the dYdX Chain through meticulous testing before progressing to full trading with rewards.

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• Court approves info disclosure order in SEC vs. Binance lawsuit.
• The protective order allows confidentiality for trade secrets and customer info in discovery.
• Binance challenges the SEC’s broad demands, protecting proprietary data.

A significant development has taken place in the ongoing legal battle between the US Securities and Exchange Commission (SEC) and Binance entities, including CEO Changpeng Zhao.

The US court has approved a protective order governing the production, use, and disclosure of information and materials related to the SEC vs. Binance lawsuit.

Protecting confidential information

The approved protective order establishes guidelines for the treatment and disclosure of confidential information generated during the lawsuit.

Parties involved are permitted to designate discovery material as confidential, provided it falls within specific categories defined by the court. These categories include nonpublic trade secrets, proprietary financial information, details about the ownership or control of non-public companies, and non-public customer information, such as customer identities.

The order emphasizes that the confidentiality designation won’t apply universally but only to discovery material that precisely aligns with the court’s stipulations. This move seeks to strike a balance between the transparency required in legal proceedings and the protection of sensitive information.

Binance’s defence against SEC’s “fishing expedition”

Binance.US, amidst the legal proceedings, in August 2023 sought a protective order against the SEC, alleging an unwarranted “fishing expedition.” Binance argued that the SEC’s extensive discovery demands were overly broad and unreasonable. The regulatory body’s requests, Binance claimed, aimed at acquiring every document related to customer assets, posing a potential threat to the company’s proprietary information.

Binance expressed concern over the perceived unlimited authority granted to the SEC, enabling an investigation into all aspects of Binance.US’s asset custody practices without apparent limitations. This legal manoeuvre underscores the importance of establishing clear boundaries in regulatory investigations, preventing overreach and safeguarding the interests of the entities under scrutiny.

As the lawsuit unfolds, the protective order stands as a crucial mechanism ensuring a fair and controlled exchange of information. It reflects the court’s commitment to preserving the confidentiality of sensitive materials while facilitating a thorough examination of the issues at hand in the SEC’s case against Binance entities and CEO Changpeng Zhao.

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