Small businesses and hedge funds have traditionally had to rely on large prime brokers to provide liquidity, but an innovative new blockchain protocol from Singapore-based Primex, called Decentralized Prime Brokerage Protocol (DPBP), could potentially disrupt the traditional prime brokerage industry by using blockchain technology to create a decentralized marketplace where investors can find counterparties and execute trades without relying on the services of a third party. Today, Primex launched an alpha version of DDBP on Ethereum’s testnet.
Movements in the prime brokerage market
In recent years, prime brokerage services have become an integral part of modern finance. Simply put, prime brokers serve as intermediaries between clients and traditional brokerages by charging a commission for facilitating trade execution, settlement, and financing. As a result, prime brokers have taken over back-office operations from banks and have consequently made it easier for institutional investors to enter various markets like private equity or hedge funds while also increasing market liquidity.
Primex Finance, a DeFi platform
Primex has long promised to build an open financial system, designed to bring together all parties to trade — including brokers, lenders, market makers and hedge funds — into one prime brokerage platform. Today, we are excited to take a step toward realizing that vision with our first production-ready release. The alpha version of our decentralized prime brokerage protocol is now live on Ethereum’s testnet. This is just a small first step towards building out a truly open network for finance, but it’s also a big milestone for us as we continue to grow and expand as part of ConsenSys. It’s been an incredible journey so far, and we look forward to seeing what comes next! We can’t wait to see how others use Primex Finance in order to better serve their clients.
Why do we need decentralized solutions?
Just a few decades ago, most people were conducting financial transactions over in-person meetings, but with modern technology, we are now able to transact and communicate electronically from virtually anywhere in real-time. Today, we have so many options when it comes to our financial transactions that some may wonder why we still need centralized brokerages. The answer is simple: trust. The centralization of brokers creates an incentive for those organizations to be trustworthy because their success relies on their ability to maintain a positive reputation among clients and investors.
What are the solutions offered by Primex?
By moving to a distributed ledger, Primex is unlocking a universe of advantages for its users and driving down costs across the industry. The shift enables end-to-end transparency and traceability from beginning to end, lowers settlement times, and improves asset liquidity. In short, it’s speeding up trades, protecting investors and reducing costs for all players in a way that hasn’t been possible before. These benefits are already generating interest from market participants who see how Primex could change their businesses for the better.
As mentioned above, there are several advantages offered by blockchain technology that allows trading firms to enjoy new levels of security and control over their processes and data – namely immutability, consensus mechanisms and encryption. This means an immutable record is created at every step of every transaction, with no centralized points of failure or weak links – while privacy can be maintained through selective encryption keys used only when needed. As we look ahead toward production-ready versions (Primex 1), our team will continue working closely with customers and partners to test these systems in real-world conditions as we expand our network footprint globally.
How does this protocol fit into the current landscape?
Current prime brokerage protocols are siloed and often lack transparency. As a result, individuals cannot easily verify transactions without significant resources. This project addresses those shortcomings by providing an open-source protocol that allows for distributed trustless trading of crypto assets. The protocol is also designed to support future market structure changes such as autonomous trading and cross-chain interoperability via atomic swaps or other decentralized exchange mechanisms. While several projects are working towards similar goals, our approach has some key differences from competitors in terms of security, privacy, scalability and ease of use.
Fee Schedule: 0% fee schedule during the testing phase - Please send test tokens to contract address only (do not send ETH) - Send ETH after the main net launch if you want your wallet address added to the token contract. Send ERC20 tokens with data fields 'address' (string) & 'symbol' (string). I will return you your custom token within 24 hours if the request is submitted with valid data fields + Ethereum gas fee for transaction costs
What features can be expected from the final version?
You may have heard of prime brokerage before. It is typically a service that provides financing, trade execution, and custody to hedge funds and other large institutions. However, there are major limitations in centralized prime brokerage services that serve as obstacles for both institutions and their customers. Our recently-launched Alpha version of our decentralized prime brokerage protocol (D-Prime) aims to address these shortcomings. By utilizing blockchain technology, we’re now able to provide more efficient product offerings and better services overall.
When will we see a full version release?
There are no hard and fast dates yet, but we’re working tirelessly toward a mainnet launch as soon as possible. We can only promise that we’ll move forward at a rate that is faster than any other project in our space. When we say mainnet, it means that it will be live with real money—and not just testnets or simulations. Our alpha version allows us to test out all aspects of our platform before moving to production. This includes security testing and stress testing using real money. The sooner we get feedback from users and developers, the better off everyone will be!
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2022-05-10 14:06:45
