TradeStation Crypto, the digital asset-focused subsidiary of Monex Group’s TradeStation Group, today announced a partnership agreement to leverage custody and settlement infrastructure from Seed CX’s platform, Zero Hash.
Zero Hash will help TradeStation Crypto manage its digital asset loan book and provide the firm with a centrally settled crypto offering as well as wider access to a range of cryptocurrency markets and key liquidity venues.
“Through the collaboration, TradeStation Crypto can streamline loan submission and settle digital assets, benefiting from Zero Hash’s automation and real-time valuation feeds. TradeStation Crypto and its loan counterparties can now enjoy greater efficiency throughout the loan lifecycle,” the company said.
Zero Hash lending infrastructure also enables TradeStation to automate collateral management and loan settlement, thereby helping manage counterparty risk and simplifying the acceptance of multiple forms of collateral.
Zero Hash is a subsidiary of Seed CX and has registered the unit as a Money Services Business and FX Dealer with FinCEN. Moreover, Zero Hash is a registered Money Transmitter in over 45 US states.
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The Zero Hash settlement service currently supports spot settlement of fiat and cryptocurrencies and will be launching support for repo, forwards, and other product types in the coming months. The product was already implemented into the trade cycle of traditional brokers, single-dealer platforms, FX ECNs, and other institutional trading venues.
“The Crypto lending space has experienced great growth in 2020, driven by attractive yields on crypto asset loans. There is a need for automation in the crypto lending space. Automation is the only way to bring scale and achieve higher levels of institutionalization in the marketplace,” said James Putra, Senior Director of Product Strategy at TradeStation Crypto.
TradeStation leverages Monex’s experience
Tailor-made for crypto traders, TradeStation uses global integrations to create a wide pool of liquidity sources that enable better price discovery and transparency. The company also promotes its crypto desk as helping traders avoid lengthy transactions on traditional exchanges, as well as avoid fees charged by other platforms for instant large volume trades.
The crypto-focused offshoot leverages the brokerage industry expertise of its parent, Japanese financial services giant Monex Group, to address what it perceives to be key concerns and certain weaknesses in the current cryptocurrency ecosystem.
TradeStation Crypto also provides a dedicated platform to facilitate cryptocurrency trading for institutional investors
“TradeStation Crypto is paving the way for institutional firms to engage in crypto lending. This lending product is one of the most exciting innovations in the space. We are looking forward to seeing how these new products will bring scale and efficiency to the crypto lending space,” said Edward Woodford, Zero Hash’s co-founder and CEO.