Redesigning financial markets. DeFinity is redesigning the way participants access financial markets. As a starting point, the company has targeted the global institutional spot Foreign Exchange (FX) and precious metals market to provide proof-of-concept while building a solution to address the most important market gaps. This is the largest global market with circa $6.6 trillion traded on a daily basis.
Direct access to global financial markets simplified. At the very top of the FX market hierarchy, most of the volume traded globally are dealt against the top 10 global investment banks. DeFinity aims to facilitate access to prices and orders originating from any number of participants globally including the top institutions, therefore constructing a true global exchange.
Reduced capital requirements and retention of fund ownership. Capital remains within your control by removing the need to deposit capital with global banks to access their pricing or third-party liquidity pools.
Lower systemic risk. Reduce concentration and systemic risk by removing intermediators often made up of very few players at the top of market hierarchy. History has seen several occurrences of Tier 1 institutions off-boarding their clients as a result of scaling down their business at short-notice, leaving clients at risk of business interruption.
Simple legal structure. Onboarding with participants directly often involves heavy legal paperwork and, in several cases, the legal challenges remain impossible to overcome. Through a truly decentralised exchange, participants can face each other through a single legal agreement with every other participant engaging on similar terms.
“On-chain” order book and real-time settlement. An order book maintained “on-chain” by multiple validators allow for a true peer to peer and trade by trade order execution, without any middlemen involved. The risk that one party may default on a foreign exchange transaction continues to exist within the traditional financial systems given that trades are settled the next day or two days after execution. But DeFinity aims to provide real-time settlement to virtually remove all counterparty and settlement risks.
Regulatory compliance. Once proof-of-concept is given, DeFinity aims to have the highest degree of financial auditing, KYC and AML compliance, cyber security and software hardening, financial crime prevention, and regulatory oversight.
High performance and scalability. DeFinity supports complex use cases and consistent performance with a 650 TPS score and capacity of up to 24,000 transfers per second. Despite the higher sustained peak throughput than Stellar and EOS, the team is committed to improving on-chain and off-chain performance that a global exchange requires.
Stable coin and CBDC. DeFinity aims to become the prime exchange for sovereign-backed Central Bank Digital Currencies (CBDC). In addition, stablecoins or “cash-wrapper” (a digital representation of FIAT currency) may serve as a medium of exchange as the trading currency or instrument for any financial asset listed on the DeFinity eco-s.