Hong Kong-regulated cryptocurrency exchange Bitfinex announced it has integrated the Liquid Network, a digital asset settlement network developed by Blockstream.
The Network has been reportedly designed to address the particular demands of digital asset traders, providing rapid, confidential and secure transfers of bitcoin (BTC) amongst network participants, according to the official announcement.
The integration of the Liquid Network will include:
- Tighter exchange spreads: Traders will be able to rapidly circulate Bitcoin and USDT between exchanges to benefit from pricing differences, thus reducing inter-exchange spreads across major trading pairs;
- Faster trading: Traders are able to react to trading opportunities quicker due to significantly lowered settlement times when sending between exchanges;
- Improved confidentiality: Transactions on Liquid are private by default, hiding the amounts and types of assets transacted from third parties to eliminate the risk of front-running.
The Chief Technology Officer of Bitfinex, Paolo Ardoino, says issuing bitcoin, stablecoins, and various other digital assets under one distributed ledger platform make a lot of sense.
"It reduces the integration burden for an exchange like ourselves, and traders can manage all their assets from a single wallet application. We’re excited to be active on the Liquid Network, and we’re looking forward to watching it develop," he added.
Earlier, the exchange revealed the whitepaper of its Initial Exchange Offering (IEO).
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