Bitfinex launches an institutional-grade product with Koine

The offering works in two ways. Koine manages custody of client assets separately from Bitfinex, while an additional post-trade service shields users from the credit and insolvency risks tied to their exchange trades. Customers can also obtain credit lines backed by Bitcoin, Ethereum, and other holdings on Bitfinex.

Koine's FCA approval provides iFinex-owned Bitfinex with a regulated partner to attract institutional investors. Bitfinex CTO Paolo Ardoino called the deal "another step on the path towards massive institutional participation in the crypto-trading market." Koine CEO Hugh Hughes said the partnership will "help bring new funds" to Bitfinex. For Koine, the deal represents new ground among large institutional clients.

Koine's custody setup bypasses the standard approaches. Exchanges typically choose between hot storage and cold storage. Both leave private keys vulnerable to compromise. Koine's Digital Airlocks™ system avoids this problem. The platform handles real-time settlement for both digital assets and fiat, targeting traders who need millisecond finality across a network of partner exchanges and brokers.

Bitfinex rolled out other offerings this month. The exchange introduced BTCDOM, a derivative tracking Bitcoin's dominance index, which compares Bitcoin trading volume against Ethereum, Ripple, and Litecoin pairs. The contract exhibits lower volatility than direct Bitcoin price bets. Bitfinex also launched Pulse in April, a social trading platform where users can post trading ideas to the community.