Paris-based crypto security company Ledger is moving into the institutional trading space with the launch of Tradelink, an open network designed to facilitate custodial trading through specific exchanges and partners.
Ledger, best known for its cryptocurrency hardware storage devices, aims to cater to institutions by providing them with an enterprise-grade trading platform (Tradelink) that meets their risk management and regulatory requirements.
Today, @ledger_business unveils a breakthrough solution: Ledger Enterprise TRADELINK, empowering institutional investors to build their own custom trading network with custodial trading capabilities for unmatched control over their digital assets.
Learn more 👇…
— Pascal Gauthier @Ledger (@_pgauthier) June 28, 2023
Ledger’s Tradelink Unlocks Institutional Trading Opportunities
According to a press release, this newly launched product seeks to enhance security, flexibility, and transparent governance. Institutions can leverage Ledger’s technology and connect with regulated custodians and exchanges.
However, Ledger’s Tradelink network has already secured partnerships with several prominent players in the crypto industry. Crypto.com, Bitstamp, Huobi, Uphold, CEX.IO, Wintermute, Coinsquare, NDAX, Damex, Bitazza, Flowdesk, and YouHodler are among the crypto exchanges and broker partners that have joined forces with Ledger Enterprise.
This flexibility ensures that firms are not locked into a single custodial provider, enabling them to tailor their custodial arrangements according to their specific needs and preferences.
Sebastien Badault, VP of Enterprise at Ledger, emphasizes the importance of aligning with fund managers and multiple custodial partners to distribute risk effectively, which is likely to become increasingly relevant in a more regulated environment.
“We are creating a future-proof solution that will give Ledger Enterprise customers flexibility and security, allowing institutions to de-risk their businesses.”
The company’s foray into institutional trading comes at a time when concerns about transparency and regulatory compliance in the crypto market are mounting. Events like FTX’s bankruptcy and recent lawsuits by U.S. regulators against Binance and Coinbase have raised questions about the robustness of market infrastructure.
Real-time Tracking and Zero Transaction Fees
It should be noted that Ledger Enterprise offers real-time tracking of collateral balances and operational status for all participants in the network. This feature enhances transparency and gives participants a comprehensive view of their assets.
Additionally, Ledger has announced zero transaction fees, suggesting the firm is a technology provider rather than a financial intermediary. This fee structure provides predictability in operational costs and simplifies financial planning for institutions.
Speaking about the arrangement, Crypto.com President and COO Eric Anziani expressed confidence in Ledger’s Trading Operation technology.
“Ledger’s innovative Trading Operation technology not only heightens security but also fosters a regulation-friendly landscape for institutional trading,” Eric Anziani maintained.
The venturing of Ledger into institutional trading with Tradelink is seen as a way of building upon its core strength in security and governance solutions for the crypto ecosystem. By leveraging its existing technology and expertise, the hardware crypto wallet producer aims to reduce counterparty risk and provide institutional investors with a secure and transparent environment for custodial trading.