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Cobalt Returns to Roots to Improve Foreign Exchange With CobaltFX, Digital Asset Division Launch

On-boarded onto United Fintech’s global capital markets platform, Cobalt is “returning to roots” according to its CEO. It has relaunched as CobaltFX with a Digital Asset division to form a parallel ‘new venture’ on the same platform in Q2.

Following acquisition in December 2022 by United Fintech from previous owners i.a. Citibank, Standard Chartered Bank, S&P Global, Singapore Exchange (“SGX”) et al., Cobalt is adjusting to its new ownership. As part of being on-boarded onto United Fintech’s digital capital markets product platform, Cobalt is relaunched as CobaltFX. It will focus 100 per cent on foreign exchange (“FX”), thus back to “the company’s roots”, says ascending CobaltFX CEO Marc Levin, a vision echoed by CobaltFX’s founder Andrew Coyne.

Coyne said: “CobaltFX‘s goal is to re-engineer the world of foreign exchange through a rock solid platform focusing on credit optimisation and post-trade FX. Dynamic credit is the most important starting point. As part of United Fintech, we join four other partner companies, retaining our formal status as a partner company. There are a lot of synergies between the partner companies and United Fintech. Not only from a client and solution perspective, but from a visionary perspective. Together, we’re stronger than ever.”

Andrew Coyne has been onboarded as part of United Fintech. He will continue with the CobaltFX team to focus on innovating and expanding the FX product.

Impending DA spin-off in Q2

As the name suggests, CobaltFX will be solely concerned with the FX industry. It is thus leaving the company’s digital asset (“DA”) division outside the product offering. However, this won’t be for long. Marc Levin states that rather than a “buy-up” of Cobalt, it’s a United Fintech “buy-in” into the growing DA space. A space perceived as the next thing banks will want to get ahead of in order to stay on par and future-proof their models. Thus, a much anticipated United Fintech DA spin-off is impending with further details to be disclosed in Q2:

“We believe both opportunities are huge and should be pursued, but not under the same banner. FX and DA are similar in many ways and are likely to merge in the future. However, the two industries are currently at very different maturity stages of their evolution. They largely operate independently and therefore require different approaches to be successful on their own.

“Hence the spin-off of Cobalt’s DA product as part of a bigger United Fintech play in this area. We’re very excited to announce this later in Q2. Until then, I’m very pleased I get to join this adventure with Andy Coyne and Darren Coote”, *says Marc Levin.

Alongside his role as CEO, Levin will continue in his current role as Group COO in United Fintech where he has been since its launch in 2020.

From company to product, with more resources 

According to Andrew Coyne, the change of ownership is a strategic and important move to allow CobaltFX to become part of something bigger. He cities United Fintech’s partner offering with a focus on removing “administrative distractions”, such as HR, finance and legal. He adds that at the same time, they can bolt-on to their global distribution, sales and marketing as the key to success.

As part of the relaunch, Darren Coote will take a bigger role in United Fintech. He will work with other partner companies, and from United Fintech, Elizabeth Missfeld will step in as COO. Erik Nordahl as CTO will deliver on CobaltFX’s vision and commitment to clients. Ultimately, this enables CobaltFX to focus on product development. This is in addition to client satisfaction and further innovation, reasons Coyne.

He applauded the idea of more fintechs joining the United Fintech digital capital markets product platform in the year(s) to come: “United Fintech has a unique model that does not seek to absorb the partner companies. Rather, it looks to exploit all the product synergies for clients making it easier for banks and financial institutions to adopt multiple products through a single platform.

“This allows clients to adopt and select solutions, contracting with United Fintech directly. Thus if you’re a client of one of the products, you can more seamlessly license and implement other products, significantly reducing procurement processes and onboarding”, ends Andrew Coyne.

Author

  • Francis is a journalist and our lead LatAm correspondent, with a BA in Classical Civilization, he has a specialist interest in North and South America.

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