Fireblocks Off Exchange enables businesses across the world to trade on centralized exchanges without introducing counterparty risk. Today, we’re proud to share that Bybit is the newest exchange to integrate with Off Exchange.
Bybit, a crypto exchange ranked the second-largest in the world, joins Deribit, with further integrations to follow. These include BIT, Bitget, Coinhako, Gate.io, One Trading, and OKX.
At Bybit, we are committed to fostering trust in the crypto industry and enhancing the security of institutional traders. The integration of Fireblocks Off Exchange offers enhanced on-chain transparency and a reliable trading environment, reinforcing trust and confidence for our customers. By leveraging Fireblocks, we underscore our unwavering commitment to institutional asset safety, which has always been a top priority for us.
Meeting institutional needs with Off Exchange
Off Exchange empowers institutional traders to trade on centralized exchanges from an on-chain, multi-party computation (MPC) shared wallet, mitigating exchange counterparty risk.
By utilizing Off Exchange, Bybit is taking a proactive step towards bolstering security protocols and meeting the evolving needs of institutional traders.
Off Exchange leverages MPC technology to enable traders to allocate and mirror assets directly to an exchange from a wallet they mutually control, protecting their principal from counterparty risk, such as hacks, bankruptcy, and fraud, while providing centralized exchanges with complete on-chain transparency that client accounts are fully collateralized.
For institutions, Fireblocks Off Exchange offers:
1. Enhanced asset protection and security
The comprehensive MPC wallets utilized by Fireblocks Off Exchange programmatically lock and mirror assets to the connected exchange. By locking funds in the collateral vault accounts (CVAs), traders reduce the risk of unauthorized access or loss of assets, providing an additional layer of protection.
2. Real-time settlement and transparency
The blockchain-native FIreblocks Off Exchange system enables real-time and on-chain settlement. This means that transactions and asset movements are recorded on the blockchain, providing transparency and traceability for exchanges and institutions, without taking custody of client assets.
3. Flexibility and control
Institutional traders can withdraw assets to other venues or wallets once the CVA is rebalanced, giving them more control and the option to choose the most suitable storage or trading options.
4. Increased liquidity and efficiency
The system enhances liquidity by optimizing capital allocation and facilitating faster and more efficient trading activities. This benefits both the clients and the exchange by enabling them to make better use of their resources and participate in a more liquid market environment.
Fireblocks has always taken an innovative, technology-first approach to solving some of the most pressing challenges in the digital assets industry. By using the Fireblocks Network, an institutional-grade digital asset transfer platform for rapid digital asset transactions and dynamic payment workflows, businesses gain direct connectivity to over 1,800 liquidity partners, trading venues, and counterparties, and can streamline their trading operations with Network applications such as Off Exchange.
