Menu

Search

Menu

Search

Fundamental Interactions comes up with automated hedger for tokens

If the potential of Bitcoin as a financial asset used for hedging against inflation and portfolio diversification, is that suffice as a risk mitigation tool for entire crypto-universe? Does bitcoin have all capabilities of hedging? 

When we get to think of these questions, we tend to consider alternatives as well.

Fundamental Interactions (FI) has made an announcement on the unveiling of its automated-hedging platform meant for ease of liquidity within a new exchange.  It enables an automated market maker to refactor quote feeds from an active external exchange in order to supply continuous order liquidity to the internal market book. 

Any cryptocurrency or any token should clearly exhibit as to how the valuations are derived, investors’ protection through substantial liquidity at any given time and ensure physical custody. And the liquidity objective should be the solution for all global banks and financial institutions across the globe that utilizes tokenized hedging as a platform for cash mobilization.

VL Financial Ltd, currently in the process of attaining a digital asset license, will use the service in Bermuda. 

The service has two legs (auto-quoting and auto-hedging) each performed from the principal account of a market maker to the exchange. The auto-quoting process converts bid-ask quotes from external exchange market data feeds into orders to create liquidity.  The auto-hedger leg of the process is a dynamic hedging and routing system that optimally liquidates positions resulting from the auto-quoting process. 

Julian Jacobson, President and Chief Operating Officer of Fundamental Interactions Inc. says “the ability to generate instant liquidity in Bermuda for digital asset tokens that are actively trading in other markets is an important avenue.” 

The hedging process could be administered by an HTML5 interface that displays position views with P&L, slippage and risk management functions. 

Currency Strength Index: FxWirePro's hourly BTC spot index is inching towards -148 levels (which is bearish), while hourly USD spot index was at 45 (bullish) while articulating (at 11:28 GMT). 

For more details on the index, please refer below weblink: http://www.fxwirepro.com/currencyindex

  • Market Data
Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.