Published Sep 30, 2021
By Qredo Team
X-Margin and Qredo Partner to Unlock Secure Credit for Institutional Digital Asset Trading
Pilot program to showcase how technology can address on-chain lending to institutions trading digital assets
Partnership to enhance transparency, reduce counterparty risk and enable on-chain auditability
London, September 30, 2021 — Qredo, the decentralized custodial infrastructure provider, is partnering with X-Margin, the leader in applying privacy-preserving technology to facilitate credit to institutions trading digital assets.
The partnership brings together borrowers and lenders in a secure Layer 2 custodial and settlement network. X-Margin and Qredo are running a pilot program with leading institutions to showcase how they are addressing the major obstacles holding back the scaling of credit through centralized and decentralized (DeFi) lending platforms.
Anthony Foy, CEO of Qredo (LinkedIn | Twitter), said: "Secure borrowing and lending have been missing from the digital asset ecosystem, creating a credit crunch that has limited the capital efficiency and trading capabilities of institutions moving into the market. Adding X-Margin Credit to the services available on Qredo Network makes borrowing and lending as secure and seamless as possible throughout the lifecycle of the loans."
X-Margin Credit's real-time asset monitoring enables borrowers to establish their creditworthiness without revealing sensitive information to anyone. On Qredo Network, borrowers can initiate loans and settle margin calls instantly. Lenders gain security through X-Margin Credit’s increased visibility of risk and programmatic governance of funds using Qredo Wallet's built-in multi-party computation (MPC) controls. The partnership aims to solve an acute problem in the crypto space in a scalable and disintermediated way.
Darshan Vaidya, CEO of X-Margin (LinkedIn | Twitter), said: "Applying our technology to Qredo Network will enable seamless bilateral lending and control within a secure and tested architecture. The combination will drive more capital efficiency for trading firms on the Qredo network, while empowering lenders with the highest standard of bilateral risk analysis available in the market.”
X-Margin Credit enables data-driven lending for institutional capital. X-Margin has developed a privacy-preserving risk engine for institutions to access trading leverage and for lenders to have real-time risk monitoring without borrowers needing to reveal commercially sensitive information. X-Margin Credit currently monitors $2.4 billion of borrowers' net trading positions. In September, X-Margin raised $8 million in a Series A funding round backed by leading digital asset investors and the industry’s most active trading institutions. Follow X-Margin at www.xmargin.io | Twitter | LinkedIn
Damien Fletcher and Simon Packard – Streets Consulting
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Qredo is a decentralized digital asset management infrastructure and product suite designed to unlock new opportunities for institutional investors in digital assets and decentralized finance. Qredo's Layer 2 blockchain protocol enables users to seamlessly transfer and settle BTC, ETH, and ERC-20 tokens. Assets are secured by Qredo’s advanced Gen 2.0 multi-party computation (MPC), which provides Tier-1 bank security and institutional-grade governance. Follow Qredo on LinkedIn and Twitter.