Enigma Securities, a financial institution that specializes in crypto liquidity, custody solutions, and banking relations has recently announced a partnership with the CME Group. The partnership will help Enigma expand its execution services into Bitcoin options and futures.
Enigma Partners With CME Group
According to a recent announcement, Enigma Securities has partnered with the CME Group, which is the world’s largest financial derivatives exchange. From partnering with the CME Group, Enigma Securities plans to integrate support for Bitcoin Futures & Options block trading. It is important to note that Enigma Securities is one of the fastest growing crypto institutions that focuses on liquidity, electronic execution, and other financial services. By having access to CME’s “ClearPort platform,” Enigma will become a “go-to” for market participants that have interest in CME Bitcoin derivative block trading. With Enigma Securities working with many institutional and corporate clients, the firm wants to make it easy for their clients to get involved in Bitcoin. As institutional demand has grown, Enigma has transitioned from an OTC brokerage firm, to a one stop entity for digital asset liquidity.
According to Jordan Ettedgui, Head of Trading at Enigma Securities:
“As the crypto market matures over time, institutional clients’ demand for risk management and liquidity alternatives away from spot products continues to grow at an accelerated pace. Our core competency in equity derivatives naturally leads to a strong commitment to crypto derivatives execution services. We are very excited to officially offer our clients access to Bitcoin Futures and Options through the world’s leading and most diverse derivatives marketplace.”
More On CME ClearPort
The CME ClearPort API is integrated by partner companies, so they can quickly connect to the platform without leaving their own trading softwares. Even though Enigma will leverage it to build out their crypto solutions, the application supports a diverse set of asset classes such as FX, Energy, Metals, Interest rates, and many others. Among these asset classes, ClearPort manages to clear 300,000+ contracts on a daily basis. In addition, 17,000+ different financial firms currently utilize the API for flexible clearing services.
Institutions And Crypto
As mentioned before, Enigma believes that institutional demand for liquidity alternatives will continue to grow as the industry matures. The industry has seen institutional adoption take off in 2020 due to the value of liquidity. Huobi Global, one of the largest crypto exchanges has recently verified this. According to the exchange, institutions are adopting cryptocurrencies due to their high amounts of liquidity and volatility, stating that:
“The price volatility and high liquidity of digital assets are especially attractive to investors. The crypto market is unique in that it can fulfill both demands in liquidity and volatility.
In addition, the exchange has seen growing interest in derivative markets. Since early last year, trading in these markets has surged 3-4X.
More On Enigma Securities
Enigma Securities is building a one stop solution for crypto liquidity by bridging the gap between traditional finance and digital asset markets. In addition, the firm provides services such as ATM integrations, processing solutions, and borrowing solutions. Enigma continues to work with corporate and institutional clients that rely on services through the Enigma API. The company surfaced in 2017, when its crypto division was affiliated with an international brokerage firm, Makor Group. As digital asset trading continued to scale among institutions, Enigma ended up becoming the first regulated brokerage firm that helps institutions set up banking relations and custody.
Image Source: Enigma Securities Twitter