Following the need for greater security of digital assets, AsiaNext, an institution-only global digital asset exchange, has launched crypto derivatives trading.
A joint venture between SBI Digital Asset Holdings (SBI DAH) and SIX, based in Singapore, AsiaNext provides professional investors with an end-to-end digital assets value chain. Trading members benefit from reduced counterparty and settlement risk and can enjoy capital efficiencies. This is made possible by the venue’s risk management process, flexibility, and capabilities to support frequent intra-day margining and settlement runs.
“The main motivation was to create a fair, orderly and transparent venue. One in which institutions can transact with confidence. We want to help them realise the benefits of digital assets and crypto, while minimising the downside risk,” said Chong Kok Kee, chief executive officer of AsiaNext. “We want to put regulation and rigorous governance at the forefront. As such, we’re providing institutional investors with a safe venue for exposure to digital assets in this region.”
The company supports low latency and high-frequency trading available 24/7 (for crypto derivatives), as part of a suite of connectivity options for its members. This adds flexibility and comfort for professional traders at institutions.
In September 2023, AsiaNext received regulatory approval from the Monetary Authority of Singapore. Now, the company can provide digital securities, tokenised real-world assets and sustainability-focused listings. Furthermore, the launch follows a joint survey carried out by SBI DAH and AsiaNext revealing that most institutions have increased their exposure to digital assets in the last 12 months. Despite the ‘crypto winter’, 60 per cent report an increase in client demand for tokenised securities.
Thomas Restout, CEO of B2C2, one of AsiaNext’s trading members said: “Through engaging with the AsiaNext team in recent months, we’ve witnessed their unwavering commitment to governance and risk management. Not to mention their focus on aligning closely with our needs. This instils a high level of confidence in our partnership. Being at the forefront of digital asset adoption, we are pleased to provide liquidity on the venue through our collaboration.”
Evgeny Gaevoy, founder and CEO, Wintermute, another trading member added: “As more traditional financial institutions explore alternative exposure to digital assets, partnering with AsiaNext enables us to elevate our derivatives offering, positioning Wintermute in the foreground of the expanding digital asset ecosystem.”
Accelerating institutional adoption of digital assets
“The future of finance is in bridging the gap between traditional capital markets and digital ecosystems. Institutional adoption of digital assets is emerging as a key pathway. AsiaNext, an institutional-grade solution, is poised to accelerate this transformative journey,” said Jos Dijsselhof, CEO, SIX.
“Institutions are increasingly recognising the comprehensive benefits offered by digital assets. As a result, the emphasis on risk management and a robust underlying infrastructure from venues like AsiaNext is becoming paramount,” said Yoshitaka Kitao, CEO, SBI Holdings.
How are other market participants reacting to the launch of AsiaNext?
“AsiaNext’s unique and capital-efficient setup will help facilitate broader institutional adoption of digital assets. As a frontrunner in trade concepts and best execution services JB Drax Honoré is excited to participate,” said Paul Bertrand, managing director and head of global capital markets, APAC, JB Drax Honoré.
Jonathan Caldwell, head of distribution, Trovio Group added: “Trovio Group provides institutional-grade products for sophisticated global investors. Integration with AsiaNext will give our teams access to the broad spectrum of digital assets that are in its pipeline. In turn, we will be able to deliver safe and transparent access to new investment opportunities.”