Crypto Finance, a subsidiary of Deutsche Börse Group, has introduced AnchorNote, a new system targeting institutional clients eager to trade digital assets while maintaining their assets in regulated custody. This innovative solution seeks to enhance the trading experience for institutions by providing seamless connectivity to a network of crypto exchanges and custodians through BridgePort.
The AnchorNote system allows for off-exchange settlement, facilitating real-time collateral movement without the necessity of transferring assets out of secure custody. This functionality is expected to boost capital efficiency and mitigate counterparty risk for institutional investors. According to the announcement, institutions can establish dedicated trading lines, with BridgePort managing the communication between trading venues while Crypto Finance serves as the collateral custodian.
Clients will benefit from a user-friendly dashboard to manage their collateral efficiently or can integrate AnchorNote directly into their existing infrastructure via application programming interfaces (APIs). These APIs enable different software programs to communicate directly, making it easier for institutions to leverage the new service.
Philipp E. Dettwiler, head of custody and settlement at Crypto Finance, emphasized the balance between security and capital efficiency that this new system offers. “Institutional clients face a constant tradeoff between security and capital efficiency,” he stated. “AnchorNote is designed to bridge that gap.”
The practical implications of this setup are significant; by utilizing AnchorNote, institutions like Swiss banks can pledge their bitcoin held in custody, deploying it across various trading venues without the need for moving the coins on-chain. This instantaneous access to liquidity across platforms is poised to simplify and enhance institutional trading strategies.
The initial rollout will take place in Switzerland, with plans for expansion across Europe in the pipeline. This introduction is expected to reshape how institutional clients interact with digital assets, fostering a more dynamic trading environment within the evolving landscape of cryptocurrency.
