HedgeBase, which builds simplified, secure and white-labeled trading solutions for over-the-counter desks, exchanges, and banks, today announced the release of a public beta for its flagship product, OTC Experience. HedgeBase will be partnering with Science Blockchain, the blockchain-focused studio from Science Inc., for this launch.
OTC exchanges own users’ assets, and users cannot access them because they don’t have the private keys to unlock them. This can make users feel at risk when trading on OTC exchanges. The alternative for users — trading with OTC desks — is manual and not secure. Some OTC desks have had to rely on Skype and Telegram to send contracts in excess of $1 million.
HedgeBase models the evolution of trading digital assets as three overlapping phases.
Naturally, the first and most convenient vehicle was the exchanges, centralized or decentralized. For many years now, exchanges have faced theft of funds from hackers who found the enormous aggregation of assets in the exchange wallets an inviting target. The second, more secure and less convenient model is peer-to-peer over the counter trading. The third and final destination is merely an extension of peer-to-peer trading, where OTC transactions are automated without much human intervention.
HedgeBase’s flagship product, OTC Experience, aims to improve the archaic operations at OTC desks.
OTC Experience is a plug-and-play solution that simplifies cross-chain and ERC20 asset swaps like never before. The innovative solution reduces most transactions to two clicks, supports BTC, ETH, XRP, XLM, and all ERC20 tokens, all while exponentially increasing security standards in comparison to exchanges used today.
To ensure security, HedgeBase uses cryptographically sealed contracts in an on-chain and off chain capacity for every transaction. This provides trustless trading between OTC desks and high net worth individuals using cryptographic proofs. With a single click, contract transactions are fulfilled simultaneously, eliminating the need for trust.
Key management is a significant hurdle for blockchain adoption. HedgeBase has built a frictionless experience with the end user in mind, while upholding a strong commitment to client-side cryptography to avoid the failings of the overwhelming majority of crypto exchanges.
HedgeBase’s OTC Experience allows users to ask the OTC desk to store an encrypted version of their keys. The encrypted keys are unlocked using the user’s password, which is known to the user and the user only. Users can also choose not to store their keys.
“We believe in a peer-to-peer trading future and we do just that, and we do it well. Our vision is to make trading digital assets and derivatives convenient without users having to worry about security. Our solutions have been developed in stealth for two years, and by partnering with Science Blockchain, we’re super-charging our growth to bring innovation to OTC desks, exchanges and banks both in the US and globally.”
HedgeBase products are designed to be a self-contained, yet integrations with existing KYC and SSO systems are made possible. All HedgeBase products are plug-and-play and intended to be up and running in a matter of minutes.
HedgeBase’s suite of products kicks off today with three fully developed initiatives:
- OTC Experience: OTC Experience: Swapping assets atomically across blockchains is a challenging task. OTC Experience is an end-to-end solution to trade a growing list of digital assets and fiat currencies, starting with US Dollar, Bitcoin, Ether, XRP and XLM. OTC Experience swaps encapsulate the intricacies of all blockchains to provide one unified API for any OTC desk.
- ERC20 Swaps:+ ERC20 Swaps are planned to become part of one full OTC Experience for cross-chain and ERC20 swaps.
- Options: The first white-labeled solution for trading Call and Put options for any underlying asset using the same uniform protocol. The product implements a fully decentralized peer-to-peer protocol. All options contracts are settled in ERC20-compliant assets, which includes USD-pegged tokens such as JPM and USDC. Options support any off-chain order book with minimal integration.
“HedgeBase takes a complicated, manual trading process and makes it simple and secure with a solution perfect for large financial institutions, financial services businesses, or OTC exchanges. We’re thrilled to be partnering with HedgeBase to bring their solution to market. HedgeBase is precisely the type of forward-thinking and disruptive company we aim to partner with and invest in at Science Blockchain.”