Fireblocks, a multi-party computation (MPC) wallet provider, has introduced a new trading system called “Off Exchange” for institutional traders. This system allows traders to swap tokens without depositing them on the exchange, reducing counterparty risk. The Off Exchange system works by using a shared MPC wallet with a private key consisting of three shards. The trading firm holds one shard, the exchange holds another, and the third shard is controlled by an oracle. To confirm a transaction, two out of three shards must sign it, preventing unilateral asset withdrawals. In certain circumstances, if the exchange or trader is unresponsive, the oracle can provide a second signature. Off Exchange has already been adopted by institutional trading firms QCP Capital, Blocktech, and Zerocap, who are using it on the Derebit exchange. Fireblocks plans to expand support to other exchanges in the future. The system aims to address counterparty risk issues that have plagued centralized exchanges in the past, such as the Mt. Gox and Quadriga incidents. By locking funds in secure MPC-based shared wallets, Fireblocks aims to prevent similar incidents in the future.

This News Article was automatically generated by Bob the Bot (AI)

Information	Details
Geography	Global
Countries
Sentiment	positive
Relevance Score	1
People	Michael Shaulov
Companies	Derebit, Bybit, Gate.io, BIT, Cointelegraph, OneTrading, QCP Capital, Bitget, Fireblocks, HTX, Zerocap, Coinhako, Blocktech, WhiteBIT
Currencies	None
Securities	None