CHICAGO, March 26, 2019 (GLOBE NEWSWIRE) -- Zero Hash, Seed CX’s digital asset and fiat currency custodian subsidiary, today launched a suite of over-the-counter (OTC) trade settlement services for digital assets. The new Zero Hash settlement service allows firms to widen the number of counterparties with whom they can trade, streamlines reconciliation and reporting, and enables frictionless settlement of trades.
At launch, Zero Hash supports spot settlement of fiat and digital assets, and will be launching support for repo, forwards, and other product types in the coming months.
“We are proud to announce the launch of the Zero Hash settlement service,” said Brian Liston, Seed CX co-founder and President of Zero Hash. “OTC traders have been demanding a robust solution to settle trades efficiently, securely and under a transparent regulatory infrastructure. Custom built for institutional use, Zero Hash offers exactly that. It lets traders focus on what they do best: execution. We take care of the rest.”
The Zero Hash settlement service offers the following benefits and capabilities:
- Straight-through processing settlement API: Investors and counterparties can submit matched trades to Zero Hash, which will then facilitate the escrow and movement of the digital assets and fiat currencies once payment is received from both counterparties. All settlement movements are netted and finalized on-chain, giving trading firms a high-performance, cost-effective, and secure experience.
- Sophisticated compliance with low friction: Zero Hash is both a registered Money Services Business and FX Dealer with FinCEN. Zero Hash is also a registered Money Transmitter in over 30 states.
- Simple counterparty onboarding: Zero Hash facilitates trading between U.S. and global counterparties, creating a settlement network that allows institutional investors to widen their customer base with minimal additional compliance effort. Clients can outsource their KYC/AML efforts to Zero Hash.
- Compliance review and monitoring: Zero Hash manages and monitors all transactions that are processed through its network, ensuring compliance with applicable regulation. Transactions are monitored on- and off-chain.
- Robust reporting infrastructure: Zero Hash provides a detailed reporting and reconciliation infrastructure to facilitate in-depth auditing and to maximize the ease of compliance. Auditors and fund administrators may be given view-only access rights to reduce any friction between key stakeholders and critical data.
- Asset variety: Investors can settle a wide range of assets with Zero Hash. Zero Hash currently supports BTC, ETH, LTC and BCH, as well as the ability to offer 19 different fiat pairs.
- Trustless trading for maximum number of counterparties: Zero Hash facilitates the escrow of fiat and digital assets and ensures that movements occur together only when both parties have fully funded. A new deposit address is generated for each on-chain settlement transaction to maintain privacy for market participants. This is a significant component to ensuring that no informational advantages are revealed.
- Quick transfers: All fiat withdrawal requests are processed within the next business day. Zero confirmation processing for new digital asset deposits is available to qualified participants.
- Multi-user controls: Participants may apply custom user privileges including administrator, funding, and view-only rights. This ensures that their assets, data, trades, and settlements are tightly controlled. Accounts can be secured with enhanced withdrawal controls, whitelisting, and withdrawal limits.
- Institutional support: A dedicated team of operational support professionals based in Chicago provide around the clock support via live chat, email, or phone. Phone support provided to assist in fund transfers, confirmations, and account changes.
For institutional trading desks, Zero Hash is a provider, not a competitor – neither Zero Hash nor any of its affiliates operate an OTC desk or a trading desk of any kind. Further, Seed CX maintains a trading ban on digital assets for all employees in order to prevent any conflict of interest.
"The Zero Hash settlement system will enable CoinRoutes – a cloud-based, distributed algorithmic trading platform – to optimize our clients trading by directing matched orders to Zero Hash for settlement,” said David Weisberger, co-founder and CEO of CoinRoutes. “This will save our clients money by lowering fees and market impact. This is an exciting development for the industry and we look forward to leveraging it for our clients.”
“Zero Hash’s settlement service is in the process of being deployed to a variety of institutional customers including FX ECNs, traditional brokers, single-dealer platforms and OTC traders,” said Edward Woodford, co-founder and CEO of Seed CX. “We are excited to be a core backbone of institutional settlement for digital assets.”
About Seed CX
Seed CX is a Chicago-based licensed digital asset exchange, which, through its subsidiaries, offers a market for institutional trading and settlement of spot digital assets, and plans to offer a separate market for CFTC-regulated derivatives. Seed CX is backed by Bain Capital Ventures. Other investors include: trading firms CMT Digital, Queueco, Tetras Capital, BlueFire Capital; well-respected digital asset investing companies, including Divergence Digital Currency Fund, OKCoin USA, F2Pool, QCP Capital, Konza Ventures, Origin Capital and Dekrypt Capital; and investment bank XMS Capital. Seed CX’s Board is composed of co-founders Edward Woodford and Brian Liston, and lead Series A investor Adam B. Struck from Divergence Digital Currency Fund. Salil Deshpande from Bain Capital is on the Board as an Observer.
Zero Hash is a FinCen-regulated Money Service Business and Money Transmitter in over 30 States. Zero Hash custodies both fiat and digital assets, with on-chain settlement.
Seed SEF is a CFTC-regulated Swap Execution Facility (SEF) that plans to offer a market for CFTC-regulated digital asset derivatives.
Seed Digital Securities Market is applying for registration as a Broker Dealer with FINRA and an ATS with the SEC.
Media Contact: Hunter Stuart, hunter@propllr.com