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GAP600 is excited to announce that we have concluded a partnership agreement with Cinnober, a leading global independent provider of exchange and real-time clearing technology, to enable instant cryptocurrency deposit transactions on the company’s exchange platform.
Cinnober develops solutions for tier-one market operators and cryptocurrency exchanges to deliver mission-critical business processes. These cover the entire transaction chain, from price discovery and order matching to clearing and settlement, and includes risk management, trade monitoring, index calculation, and market data services.
Meeting evolving customer, market and regulatory demands
Cinnober’s multi-asset class fintech solutions set includes TRADExpress™ for cryptocurrency exchanges. “TRADExpress™ offers digital asset marketplaces a complete and robust solution based on proven technology that is used by some of the most demanding financial marketplaces around the world,” explains Eric Wall, Cryptocurrency and Blockchain Lead at Cinnober.
“The system is customizable to meet evolving customer, market and regulatory demands. We also offer support for cryptocurrencies via this powerful platform, which is rich with functionality that enables competitive and agile exchanges.”
Transaction lag-time
When developing the platform, Cinnober conducted an extensive business assessment and market analysis, leveraging industry engagement and research to reveal insights into evolving customer expectations around the user experience and identify common pain points.
“Deposit transaction lag-time emerged as a major pain point for traders, especially among those who preferred to hold their cryptocurrency funds in personal wallets, off the exchange platform, to mitigate the potential risk of losses to hacking,” explains Wall.
In these instances, it could often take 60 minutes or more for a trader’s cryptocurrency transfer to reflect in their trading account. “Due to the volatility of the cryptocurrency market, these delays might occur during significant price swings, which is why we sought to implement a solution that could enable instant deposits,” adds Wall.
Instant, risk-mitigated cryptocurrency commerce
“Following initial engagements with GAP600’s co-founder and CEO, Daniel Lipshitz, we realized that the company offered a tried and tested solution that has successfully addressed similar pain points in the marketplace.”
GAP600 facilitates instant, risk-mitigated cryptocurrency commerce by enabling exchanges to recognize unconfirmed Bitcoin and Bitcoin Cash transactions as final. This is made possible by GAP600’s proprietary risk engine, which analyzes and performs live risk scoring for each transaction as it reaches the mempool. This enables the company to guarantee cryptocurrency payments before they reach the blockchain. In addition, GAP600 has an underwritten insurance policy from a U.S. based A+ rated insurance company, which would cover financial loss from an algorithm failure.
“We were confident that adding these capabilities to our offering would give our customers a competitive advantage against other cryptocurrency exchanges in the market. We subsequently commenced with a thorough due diligence process to assess the working relationship with GAP600, before signing the partnership agreement,” adds Wall.
Improving the crypto exchange value proposition
“GAP600 is easily integrated, which means the instant payment transaction functionality is ready to go live on the Cinnober platform. GAP600 will then be offered as a value-added feature to Cinnober customers,” explains Lipshitz.
Offering this functionality will significantly improve the crypto exchange value proposition, as they will be able to offer instant deposits and immediate trading – this has liquidity and customer experience implications adding further to the value proposition, says Lipshitz.
“The partnership also signifies a significant growth opportunity for GAP600. It validates our ability to add value to top-tier service providers in the crypto space, as Cinnober is a market leader in terms of solution quality and technology maturity. With many global exchanges looking to add crypto services, we believe there is significant scope for long-term value extraction through this partnership and we are excited to explore the opportunities it will create,” concludes Lipshitz.