Pipefold gives exchanges access to a network of institutional investors previously held back from the marketplace due to concerns over Lack of custodial security on exchanges.
Pipefold creates the legal and operational framework for non-custodial trading through our proprietary Proof of Reserve and Pledge as Contract.
“Institutional investors will not take positions in cryptoassets if their value cannot be custodied and safeguarded in the same way traditional assets are,”
-Sal Ternullo, co-leader KPMG’s Cryptoasset Services.
Pipefold creates the framework to allow your exchange to facilitate non-custodial trading for institutional investors. Institutional investors are backed by their custody accounts and the two-step legal framework of Pipefold’s Proof of Reserve and Pledge as Contract.
Pipefold connects your exchange to institutional custody accounts. Traders can pledge assets to your exchange using our “Pledge as Contract” and “Proof of Reserve” legal framework.
A New Record Every Year
Over $9.8 Billion in crypto assets have been stollen since 2017
-KPMG
Record braking numbers of exchange hacks for the last 3 years gives institutional investors concern over entering the space without a solution for non-custodial trading.
Institutional Traders Are Wary Of Platform Risks
48.3% of institutional traders believe platform specific failures (exchange hacks) are the #1 threat to the industry.
-Binance Institutional Survey
Money Is Moving Off Exchanges
81% of Crypto Hedge Funds use an independent custodian. Up from only 52% in 2018.
-PwC
Pipefold creates the framework for non-custodial trading, allowing assets currently sitting in third party custody accounts to be reactivated.
Traders connect their custody accounts to Pipefold. Once connected, traders can use these funds by creating a “Proof of Reserve” (PoR). The amount pledged is held at the custodian until the PoR is removed or the trade is settled.
Traders pledge amounts from The PoR to exchanges of their choice. They can change these allocations with a few clicks at any time in the Pipefold platform.
Traders execute their orders business as usual, using the balance populated in their account on the exchange from the Pledge as Contract. Funds are still secure at the custodian.
When an outstanding balance is created, the trader is prompted to settle the account. Funds can be drawn/deposited directly from/to the PoR or settled in another way by trader.
1
Proof Of ReserveTraders connect their custody accounts to Pipefold. Once connected, traders can use these funds by creating a “Proof of Reserve” (PoR). The amount pledged is held at the custodian until the PoR is removed or the trade is settled.
2
Pledge As ContractTraders pledge amounts from The PoR to exchanges of their choice. They can change these allocations with a few clicks at any time in the Pipefold platform.
3
Trade Assets On VenueTraders execute their orders business as usual, using the balance populated in their account on the exchange from the Pledge as Contract. Funds are still secure at the custodian.
4
Post Trade SettlementWhen an outstanding balance is created, the trader is prompted to settle the account. Funds can be drawn/deposited directly from/to the PoR or settled in another way by trader.
