QCP Capital, an Asian digital-asset trading firm, has connected to the trading platform of Seed CX which, through its subsidiaries, offers a licensed exchange for institutional trading and settlement of spot digital asset products and plans to offer a market for CFTC-regulated digital asset derivatives.
With this connection, Seed CX is bridging geographically disparate liquidity pools by providing Singapore investors access to a licensed and regulated exchange, and U.S. investors to liquidity and order flow from the extensive digital-assets trading ecosystem in Asia.
“Seed CX’s mission is to be the preferred trading venue for leading institutions across the world,” says Edward Woodford, Seed CX co-founder and CEO. “Our connecting with groups like QCP Capital is a further sign that we are building an exchange that is attractive to top-tier trading firms and order flow throughout the world.”
Unlike the majority of digital asset exchanges, Seed CX is purpose-built for the needs of institutional investors. Seed CX has secured and continues to pursue a wide variety of regulatory approvals to deliver the experience institutions demand, including:
- No Internal Trading Desk – Seed CX and its subsidiaries do not run internal market-making desks or proprietary OTC operations, nor are their employees allowed to trade digital assets, eliminating significant conflicts of interest that plague most exchanges.
- Trading Infrastructure – Seed CX supports FIX connectivity and multiple trading desks, and offers a diverse crypto and fiat product suite, the ability to integrate with popular institutional order management systems, and easy market monitoring.
- Risk Management and Operations – Seed CX protects market participants through an active regime of trade surveillance, segregated trader accounts, audit trails, and circuit breakers, all on a stable, reliable, and secure infrastructure and backed by a dedicated account team.
- Settlement and Custody – Seed CX, through its settlement engine, Zero Hash, offers physical settlement for a range of fiat and digital assets, as well as custody through its proprietary Digital Asset Vault.
“Singapore is the Asian hub for digital asset investors, and we see Seed CX as the perfect partner for both QCP Capital and our clientele,” says Darius Sit, Managing Partner at QCP Capital. “We appreciate Seed CX’s focus on doing the difficult things that larger investors want. They are building a venue that offers the benefits of regulatory oversight, the ability to trade spot and derivatives side by side, and, in the not too distant future, a BTCSGD pair. We expect our client base to see significant benefits from trading digital assets on Seed CX.”
Many in the digital asset space see derivatives as key to digital assets’ broader adoption among mainstream investors. To expedite this maturation, Seed CX and its affiliates are pursuing the regulatory approvals required to offer digital asset derivatives side by side with spot trading.
“A common characteristic of the most popular spot markets is a healthy and effective complementary derivatives market,” adds Woodford. “Derivatives offer great flexibility, giving investors a capital-efficient way to take positions to hedge risks. That’s what top digital-asset trading firms like QCP demand, and we are currently working with regulators on launching these derivative products.”
