Fireblocks, a digital asset security and asset transfer platform, announced today the official launch of its Deposit Acceleration Program to partner with top global exchanges on providing the fastest on-chain settlement times for the crypto buy-side. FTX, an exchange that offers crypto derivatives, options, volatility products, and leveraged tokens, is the first to join the Deposit Acceleration Program, enabling Fireblocks customers to deploy assets onto the FTX exchange in real-time with zero confirmations.
The Deposit Acceleration Program is designed to bring new institutional trading volume to exchanges while accelerating on-chain trading operations for digital asset businesses. Bitstamp, the largest crypto exchange by volume, joined the pilot program a few months back, offering one confirmation deposits to Fireblocks Network members. In the first month of joining, volume to the exchange increased by 30% from the Fireblocks Network.
“We’re really excited about partnering with the Fireblocks team to solve some of the core latency issues around moving digital assets on-chain,” said Sam Bankman-Fried, CEO and Founder of FTX. “As the first member of the program, we now have the fastest settlement venue for institutional traders.”
Exchanges require the pre-funding of assets to receive trading credit, which can take anywhere from 10 minutes to over an hour. This process is cumbersome for the buy-side, requiring effective risk management in terms of managing exchange liquidity. At the same time, it directly impacts a trader’s ability to take advantage of arbitrage opportunities. Operations and treasury teams are forced to allocate assets on exchanges even if market forces don’t necessarily indicate they should be trading on that exchange.
For derivatives traders, slow collateral transfers can result in the auto-liquidation of a position. The zero confirmation capability is critical for derivatives trading as it mitigates trading losses and unlocks the ability to trade during volatile markets.
“Exchanges are looking for creative ways to drive volume and stay competitive,” said Stephen Richardson, VP of Product Strategy at Fireblocks. “The Deposit Acceleration Program is a great way to enable Fireblocks customers to trade on an exchange more actively because being able to deploy assets quickly with their exchange partners directly impacts their ability to drive return on capital.”
Once an exchange has joined the Deposit Acceleration Program and the integration is live on the Fireblocks Network, customers will see an “ultra-fast” label next to the exchange’s name. New exchanges are being onboarded into the program today and will be activated on a rolling basis.