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Crypto Exchange Enclave Offers Quiet Trading

Enclave Market is launching what it says is the first completely confidential crypto trading service, allowing large trades that do not affect market prices.

The institutional exchange’s Enclave Cross system is designed to execute bulk trades at a given price without information being disclosed to other market participants, similar to how dark pools work for large stock trades.

“Similar to how you log into your bank account or anything secure, you use a single set of credentials,” says David Wells, CEO of San Francisco-based Enclave. “The username and password are protected by encryption.

“It’s a very complex mathematical formula that would be impossible to guess or predict,” he continues. “And we use a similar implementation of encryption, but it’s never been used this way before.”

The system allows participating traders to move assets into its Secure Enclave, where orders are matched with interested counterparties.

“It helps resolve the time lag that can result from a large trade, which can lead to slippages, information leaks, and technical signals in the market,” according to the company.

The OTC dark pool tested the early stages of the service with institutional trading firms and prime brokers such as LedgerPrime.

“We are strategic partners of Enclave, which means we held the testing process before the product went live,” says Laura Vidiella, vice president of business development and strategy at LedgerPrime and consultant at Enclave. Markets. “From there, we will also help with the initial test in production and try to see how we can provide liquidity as well.

While one of the selling points of crypto is complete transparency, Enclave Markets believes there is room for those unwilling to disclose their positions to the wider market.

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