Bequant, a crypto service firm, has officially been awarded two licenses in Malta’s mining rich region. Even though the licenses are still in principle, it will see that the firm can carry out its operations within the European region. The company announced that it was awarded a prime broker and crypto exchange license yesterday.
According to the firm, since it began, its services have always been about providing prime brokerage services to its clients across the globe. In a statement by the CEO of the firm, George Zaya, he noted that the firm already designed its services so that it was accessible to all grass of traders in the financial market.
Bequant highlights the services that its prime brokerage arm will offer
The firm mentioned that the customers of its prime brokers were usually quants, prop traders, and arbitrageurs. According to the firm, prime brokers work hard to help their clients reduce the risk associated with a counterparty on several crypto exchanges and, in turn, allows them to reap massive amounts of reward. This is notable in the recent events surrounding the facilitation of about $425 million worth of digital assets by Coinbase for Microstrategy.
The firm used its Coinbase prime service after taking over crypto prime broker outfit, Tagomi in the early part of the year. The reason highlighted below is why the firm chose to set up a prime broker. Also, it is coming at a period when institutional investors across the world are planning to make their entrance into the crypto market. Prime brokers usually help high-level investors facilitate the buying of digital assets in huge quantities. Even though prime brokerage is not new in the crypto sector, there are not so many of them compared to how they are supposed to be.
Various exchanges are vying to begin crypto brokerage services
With high-level investors making their first into the crypto market, various crypto exchanges across the market such as Coinbase, Genesis, and BitGo are now making plans to venture into that arm of dealing. In its statement, Bequant said that its brokerage wing would offer services like capital introduction, smart order routing, fund administration, risk management, securities lending, over the counter block trading, and many others.
Zarya noted that the crypto exchange has been offering its services since 2018 but under the close watch and monitoring of the Malta Financial Service Authority. The CEO also pointed out that the firm was mandated to follow specific guidelines spelled out in the Virtual Financial Assets Act.
This new development means that even though the crypto exchange is now free to offer both its prime brokerage and crypto exchange services, it will have to follow the rules that it has always followed. Zarya also mentioned that the new license would see them own up to €730,000 in its reserve. With these licenses already in the bag, Bequant will be able to apply for further licenses in the future if they wish to.
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