Capital markets software house Cinnober is teaming up with virtual currency processor and security specialist BitGo to hawk their technology to cryptocurrency exchanges.
Cinnober says that BitGo's wallet technology will expand its trading and post-trade platform, enabling it to offer cryptocurrency exchanges an end-to-end secure, institutional-grade proposition.
BitGo’s wallets and custodial services allow clients to store and transfer digital assets using industry standards for security and financial privacy, complete with security key management, multi-signature setups, setting of procedures and client-driven policies.
Cinnober says that by combining this with its own exchange technology and market surveillance expertise, means a reliable and proven, high-performance trading package to handle increasing market volumes, expectations from institutional investors and requirements from regulators.
Veronica Augustsson, CEO, Cinnober, says: "The cryptocurrency market has grown significantly in the past few years, and we’ve seen exchanges in this segment struggle with capacity, scalability challenges and repeated outages.
"There is an opportunity for Cinnober to support this market with proven trading and surveillance solutions used by established financial markets, and, with BitGo’s secure and reliable wallet and custody services, we can offer a competitive solution with short time-to-market."
Cinnober has been keen to open itself to a new market for its trading, clearing and surveillance platform, as digital currency businesses and exchanges are increasingly drawn into a regulated environment.
Earlier this year, the firm began running tests on the Lightning Network to determine its potential for scaling up cryptocurrency transactions across the bitcoin blockchain.