Fireblocks Claims Exchange Program Enables Zero-Confirmation Crypto Deposits
Digital asset storage and transaction firm Fireblocks is hoping to drastically speed up cryptocurrency trades for big players and institutions.
- The company launched what it calls the Deposit Acceleration Program on Tuesday, a system that is claimed to offer crypto deposits on exchanges with zero confirmations in real-time.
- The program greatly reduces the time it takes to settle large transactions on-chain and has potential to bring fresh institutional trading volume to exchanges, according to a press release provided to CoinDesk.
- Stephen Richardson, Fireblocks’ VP on product strategy, told CoinDesk the program effectively locks digital assets into a transaction, preventing the possibility of an inadvertent double-spend or resubmission of the transaction.
- Most exchanges require the digital assets to be loaded on their platform before trading – a process that can take from 10 minutes to 24 hours, depending on network and levels of congestion.
- A deposit isn’t normally available on an exchange until the transaction has been confirmed a number of times by miners on the cryptocurrency’s network.
- This delay poses a problem for those wanting to quickly take advantage of arbitrage opportunities or those exchanges running on tight liquidity margins, Fireblocks said.
- Antigua and Barbuda-based crypto derivatives exchange FTX has become the first to join the program, meaning Fireblocks customers can now send cryptos to FTX with zero confirmations in real-time.
- The firm is hoping to partner with more exchanges on the program.
See also: FireBlocks CEO Pours Cold Water on Libra Excitement