SINGAPORE, July 18, 2024 — HTX announces its integration of Fireblocks Off Exchange, an innovative direct custody solution that mitigates exchange counterparty risk. Fireblocks, an enterprise platform to manage digital asset operations and build innovative businesses on blockchain, launched Off Exchange to enable trading firms and asset managers to trade on centralized exchanges from an on-chain multi-party computation (MPC) shared wallet. The integration of Off Exchange will help strengthen digital asset security, streamline global compliance operations, and create a better virtual asset trading experience for HTX users.
Off Exchange effectively mitigates exchange counterparty risk by allocating and mirroring assets from a wallet both institutional traders and exchanges mutually control, leveraging Fireblocks’ MPC technology and on-chain settlement. In the last 90 days, the Fireblocks Network, upon which Off Exchange was deployed, facilitated over $200 billion in transactions between institutional traders and over 30 connected exchanges.
In March 2023, HTX joined the Fireblocks Network, an enterprise-grade digital asset transfer platform for rapid digital asset transactions and dynamic payment workflows, to facilitate seamless trading on the HTX platform, leveraging the direct custody solution offered by Fireblocks.
Fireblocks Off Exchange: Battle-Tested Technology and Real-Time Settlement
Fireblocks Off Exchange sets itself apart from other third-party custodial solutions by utilizing MPC technology to help traders mitigate exchange counterparty risk by locking funds in secure MPC-based shared wallets.
Justin Sun, a member of the HTX Global Advisory Board, acknowledged the importance of leveraging Fireblocks, stating, “By working with Fireblocks, HTX will deliver a more secure trading environment and an enhanced user experience. HTX is committed to establishing itself as the world’s leading one-stop trading platform, earning the trust of millions of users worldwide.”
Michael Shaulov, CEO and Co-founder of Fireblocks, said, “Exchanges are increasingly looking to innovative technology and institutional-grade security to address the challenges around counterparty risk and to ensure customer funds are protected. Fireblocks Off Exchange provides HTX with the ability to monitor and validate client collateral on-chain and enforce risk management without taking custody, as well as increases liquidity and maximizes capital efficiency, creating a more secure digital asset trading environment.”
HTX recognizes the launch of Fireblocks Off Exchange as a milestone in risk mitigation for over-the-counter (OTC) transactions in the cryptocurrency market. Adhering to the “User First” principle, HTX is committed to consistently reducing trading risks and enhancing the overall trading experience. By working with Fireblocks, HTX aims to contribute to a cryptocurrency ecosystem that fosters greater freedom in trading, while simultaneously decreasing risk and increasing liquidity. Users from both platforms can seamlessly perform instant transfers, payments, and other operations directly through their HTX accounts. This move enhances the platform’s global presence and provides a myriad of investment opportunities for users worldwide.
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