D2X teams up with ABN AMRO to provide off-exchange digital asset safekeeping services
In a significant move towards institutional adoption of crypto derivatives trading, ABN AMRO Clearing has partnered with cryptocurrency derivatives exchange D2X for off-exchange collateral management services. This collaboration marks the introduction of a first-of-its-kind collateral management solution designed specifically for institutional clients.
The partnership enables regulated, secure, and efficient operations in crypto derivatives, addressing key institutional concerns such as risk management, regulatory compliance, and custody within a regulated framework. D2X, operating as a multilateral trading facility (MTF) regulated under MiFID, provides a secure gateway for digital asset derivatives trading on a fully licensed platform, operating seven days a week, which is crucial for institutional investors requiring continuous market access and high compliance standards.
ABN AMRO’s involvement strengthens trust and operational robustness. The bank, with its legacy as a European clearing bank, brings expertise in traditional financial infrastructure and now extends this to crypto-related services. While specific historical details about ABN AMRO’s blockchain and digital asset activities are not detailed, the partnership signifies the bank’s progressive engagement with digital asset markets and platform integration for institutional use. ABN AMRO’s regulatory presence and experience as a clearing bank underpin their role in facilitating secure collateral management and settlement solutions that meet institutional expectations for compliance and operational security.
Recent developments include ABN AMRO Clearing's successful proof-of-concept with the trading platform 21X, conducting an on-chain trade of tokenized assets against stablecoins. Moreover, ABN AMRO Clearing has registered its first digital bond on a public blockchain, raising €450,000 for client APOC.
Under this partnership, D2X members can trade derivatives on the platform while their digital asset custody remains in segregated accounts held by ABN AMRO Clearing. This trend of traditional banks partnering with crypto exchanges is indicative of the growing institutional adoption of crypto derivatives trading, as demonstrated by similar arrangements such as Standard Chartered's partnership with OKX.
This advancement supports D2X’s objective to provide a secure gateway for digital asset derivatives trading on a fully licensed MTF platform, operating seven days a week, which is crucial for institutional investors requiring continuous market access and high compliance standards. The collaboration allows for client assets to remain separated from the trading venue's own holdings, emulating a well-established model from traditional markets.
[1] Source: ABN AMRO press release, D2X press release, and various industry reports.
- ABN AMRO's partnership with D2X has led to the utilization of blockchain technology for tokenization of assets, as demonstrated by their successful proof-of-concept with the trading platform 21X, where tokenized assets were traded against stablecoins.
- The collaboration between traditional finance institution ABN AMRO and crypto derivatives exchange D2X has enabled the use of blockchain in facilitating secure and segregated digital asset custody for institutional clients, emulating a well-established model from traditional markets.
- As a result of this partnership, D2X is able to offer insights into the increasingly complex realm of digital asset derivatives trading, providing institutional investors with technology-driven, secure, and continuous market access while maintaining high compliance standards.
