The derivatives market has always been attractive for larger investors, but some of the hurdles to overcome are capital efficiency, custody and security. Fireblocks allows for the trading of derivatives on any asset, using any form of collateral while receiving cross-margin benefits across counterparties. Essentially, it enables institutional traders to move digital assets without the operational or security headache.
Fireblocks is banking on assets like cryptocurrencies becoming a new part of the mainstream trade of financial institutions. Although cryptocurrencies are known for being notoriously unstable, when traded properly they can be hugely profitable. So, in a safer landscape, there is a lot of incentive for new participants.
Basically, by raising security standards, a new crop of institutional entities is able to set up shop in the crypto world. This means more business for Fireblocks, and a stabler market which then attracts even more interested parties. The company continues to develop its offering, for example through the recent acquisition of TRES which enables it to deliver the first complete operating system for digital assets.
Kirsty
Company Specialist at Welcome to the Jungle