DeFinity Markets has received approval from the Jersey Financial Services Commission (JFSC) to launch an investment grade digital asset matching and settlement platform. According to the company’s statement, the initiative will leverage Jersey’s Virtual Asset Service Provider (VASP) framework to offer bank-backed credit intermediation to investment grade clients.

Addressing Overcollateralization

The platform reportedly aims to address key challenges in the sector, including counterparty risk and overcollateralization, making it a promising new player in the global financial landscape.

DeFinity Markets, a pioneer in institutional digital asset trading, is set to expand its footprint in the financial world with the launch of its new platform in Jersey. This marks a strategic move for the company, which has been active in the spot foreign exchange market since 2014.

DeFinity Markets is connected to some of the world’s leading banks, including Nomura, Commerzbank and Credit Agricole, and has already built a strong presence among global buy and sell clients.

Co-founder Manu Choudhary was excited about the expansion, highlighting Jersey’s commitment to financial innovation. “Jersey’s robust VASP framework and commitment to financial innovation make it the ideal location for our platform,” Choudhary said.

DeFinity Markets’ new platform introduces a challenger model where investment-grade clients can execute trades using bank-brokered credit via the prime brokerage desk. This innovation aims to eliminate the burden of overcollateralization, which has been a major hurdle in digital asset trading.

Expanding the user base

Jersey has become a hub for financial innovation and DeFinity Markets’ decision to establish its operations there underlines the island’s growing reputation. The company has partnered with Carey Olsen Jersey for all legal matters, reinforcing its commitment to establishing a solid presence on the island.

Looking ahead, DeFinity Markets plans to aggressively grow its user base, attracting liquidity providers (LPs) and clients interested in trading with investment-grade counterparties. The platform’s ability to provide efficient digital asset trading solutions addresses the growing demand for robust counterparty risk management in the growing digital asset market.

This article was written by Jared Kirui at www.financemagnates.com.