- Ledger has made a foray into the institutional trading space with the release of the Tradelink network.
- Crypto.com among exchanges to support Ledger’s feature network as the firm ventures into institutional trading technology.
- The product will help mitigate third-party risk exposure in the crypto landscape.
- It comes at a time when institutional finance players are focused on the crypto industry, with BTC Spot ETFs making headlines.
Ledger announced a new product released in collaboration with several crypto exchanges based on a shared vision to help solve the menace of third-party risk exposure within the cryptocurrency industry. The development sprouts from the FTX crisis that made market participants distrust centralized exchanges while others shied away altogether. The US Securities and Exchange Commission (SEC) has invigorated the status by going after Binance and its CEO for alleged crimes.
Ledger to mitigate third-party risk exposure with new product
Ledger, a renowned hardware and cold wallet firm, has indicated through an official blog that it is launching a new platform christened Tradelink, to help prevent third-party risk exposure issues. After the November incident in the crypto exchange FTX, investors opted to steer clear of centralized exchanges, reacting at the slightest indication of trouble. This was manifest in the recent surging use of self-custody wallets after the US SEC went after Binance and its CEO for a wide range of alleged violations, including commingling of assets just like Sam Bankman-Fried.
With this move, Ledger looks to meet users where technology and governance between institutional finance and crypto traders intersect. The aim is to help institutions avoid risks related to cryptocurrency trading while fostering regulation with custodial trading solutions.
Tradelink, which the Ledger blog touts as “the first open network to enable custodial trading via exchange and custodial partners,” comes as the wallet manufacturer collaborates with crypto exchanges and Over The Counter (OTC) brokers. Some of the partners that will support the Tradelink platform include Crypto.com, Bitstamp, Huobi, CEX.IO, Wintermute, and Coinsquare, among other asset managers such as Laser Digital, Hodl Group, and digital asset trading platform Wyden.
An excerpt from the Ledger blog advertises Tradelink as:
[A] solution [that] will provide unparalleled control, security, flexibility, and transparent governance over an enterprise’s digital asset trading. With its technology foundation and security infrastructure at its core, Ledger is developing a more secure and regulation-friendly environment for institutional trading, enhancing control and ownership while significantly diminishing the risk of counterparty failures.
Ledger’s Tradelink is timely amid growing institutional interest for crypto
Ledger’s Tradelink platform comes at a time when institutional finance is focused on establishing a presence in the crypto scene. The number of firms pushing the US SEC to approve their Exchange-Traded-Funds (ETFs) indicates this, with Cathie Wood’s Ark Invest re-strategizing to increase the appeal of its application over BlackRock’s.
Among the reasons why institutional finance is venturing into the crypto scene is the recognition of the industry’s demand for regulated investment products, which is why every stakeholder wants to get in fast. Additionally, it sprouts from a desire to provide investors with regulated options to participate in the Bitcoin (BTC) market.
After what happened to FTX, where many customers and investors cited exposure, the need for third-party risk mitigation is real as crypto exchanges navigate regulatory concerns and security threats. With flexibility, risk management, and regulatory compliance at the forefront of Ledger’s Tradelink platform, users will enjoy “seamless integration with preferred counterparties” as they access the expansive global network of custodians and crypto exchanges.