Ledger Enterprise TRADELINK™

Things to Know:

— Ledger Enterprise TRADELINK is a secure off-exchange trading technology and platform that allows corporations, institutions, and asset managers to trade with digital asset exchanges or any other liquidity providers (OTC, MM) without risking direct exposure of their digital assets. — Asset managers using Ledger Enterprise TRADELINK can keep their digital assets safely in custody with their preferred custodian throughout the trading life cycle, significantly mitigating counterparty risk exposure to exchanges and LPs. — Unlike other off-exchange trading solutions available in the market, Ledger Enterprise TRADELINK allows users to design their own trading networks by integrating with asset manager(s), custodian(s), and liquidity provider(s) of their choice, with the flexibility to select counterparties to interact with.

Designed as a customizable infrastructure, Ledger Enterprise TRADELINK can mirror traditional tripartite arrangements by providing a highly configurable and easy-to-use environment to match any contractual agreement. This in turn enhances risk management and ensures consistent reliability, transparency, and adaptability to local jurisdictional and institutional requirements.

What is Ledger Enterprise TRADELINK?

Ledger Enterprise TRADELINK is an off-exchange trading solution built as a ready-to-use open standard for the industry. It is designed to: 

• Reduce counterparty risk exposure to centralized digital asset exchanges and any other liquidity providers (OTC, MM) 
• Enhance the trading experience, reduce costs, and minimize the execution time of trades.
• Provide flexibility to adjust to local jurisdiction and institutional requirements to maintain regulatory compliance

Standard trading processes often require asset managers to surrender complete control over their funds to a single custodian. Ledger Enterprise TRADELINK gives asset managers the freedom to choose multiple custodians and trade with various digital asset exchanges to execute trades.

Ledger Enterprise TRADELINK can be set up to mirror traditional tripartite financial arrangements, with qualified custodians safeguarding pledged digital assets on behalf of asset managers, while also giving them exposure to their preferred liquidity providers. Depending on the contractual arrangements between users, this may be done by the custodian acting as a network administrator to connect multiple liquidity providers, including prime brokers, OTC, and market markers. 

Ledger Enterprise TRADELINK also features robust hardware and software technology offering customizable governance rules, advanced policy engines, and detailed audit trails, to meet institutional compliance standards and regulatory reporting requirements.

Ledger Enterprise TRADELINK is the only solution on the market offering an audit trail with cryptographic proof of pledged collateral enforced by hardware security module (HSM) technology. 

Benefits of Ledger Enterprise TRADELINK

There are several ways in which Ledger Enterprise TRADELINK sets itself apart from the competition:

Open Network

Ledger Enterprise TRADELINK operates as an open network, allowing asset managers and corporate cryptocurrency traders to join and leave at their convenience (subject to contracts with other users). This open network model provides unparalleled flexibility and control over digital asset trading.

Exchange Risk Mitigation  

Unlike traditional custodial solutions, Ledger Enterprise TRADELINK offers a non-exclusive approach, allowing users to choose any custodian participating in the Ledger Enterprise TRADELINK network. Additionally, users can pledge digital assets using partner custodians or integrate their preferred regulated custodians in different jurisdictions. This innovative approach allows traders to diversify their selection of custodians and liquidity providers and maintain maximum control and transparency over their digital assets. 

To optimize risk distribution, Ledger Enterprise TRADELINK also allows the simultaneous use of multiple custodians.  Asset managers have the ability to change custodians at any point, further enhancing risk management and operational flexibility.

Technology First Approach

In contrast to solutions offering a custodian and financial intermediary service, Ledger Enterprise TRADELINK is a technology solution only, not a financial service. This means that Ledger solely develops the Enterprise-grade technology that powers and secures trades on Ledger Enterprise TRADELINK. 

Spreading the credit, counterparty, operational, and network risks across financial service providers and the tech stack provider ensures a clear separation of roles between the tech provider (Ledger), liquidity providers (centralized digital assets exchanges), asset managers, and custodians. 

Zero Transaction Fees

A major advantage of Ledger Enterprise TRADELINK is its innovative business model, which is designed to reduce transaction fees and accelerate users’ access to trading counterparties. Ledger does not currently charge any fees for transactions using Ledger Enterprise TRADELINK and with Ledger Enterprise TRADELINK, users can instantly pledge digital assets directly from their custodian account to their chosen liquidity provider. 

This streamlined configuration eliminates unnecessary transfers of onchain funds or digital assets, as well as their associated costs, while dramatically reducing users’ time to complete a trade, by removing settlement delays. Ledger EnterpriseTRADELINK offers its users access to cost-efficient asset management without hidden charges, giving clients the transparency necessary to manage their investment projections with greater financial predictability. 

Ledger’s Trusted Hardware Security

Many industry competitors use Multi-Party Computation (MPC) software, whereas Ledger Enterprise TRADELINK is designed to make no compromise on security and employs a combination of HSMs (Hardware Security Modules) and enterprise-grade Ledger Stax™  devices used as Personal Security Devices (PSDs) by each operator. This state-of-the-art, zero-trust architecture, offers role-based access control with clear signing technology and cyber-secure governance functionality at every step, maintaining the highest security standards that Ledger is renowned for.  

Ledger Tradelink API

While Ledger doesn’t compromise on security, Tradelink also offers a dynamic rest API interface in a secured environment for systematic users to interact programmatically with the platform if they wish to monitor, manage, pledge, and settle collateral balances. Tradelink seamlessly integrates trading platforms, smart order routers, and settlement engines via API. Through the API, authorized participants, such as exchanges and funds, can:

● Receive real-time notifications for collateral balance updates.

● Pledge assets.

●Agree on settlement instructions.

Exchanges can also raise arbitration requests through the API. The custodian is responsible for creating API user accounts and providing credentials to the different Tradelink participants. The exchange is responsible for securing API credentials when in use.

By automating and optimizing these crucial aspects of trading, the API offers a range of compelling business benefits including Increased Operational Efficiency and Scalability.

Generate Yield While Trading

Ledger Enterprise TRADELINK empowers asset managers and corporate cryptocurrency traders to maximize capital efficiency by generating yield via liquid staking and yield-bearing stablecoins, both before and during the off-exchange trading cycle. With the freedom to use supported yield-generating stablecoins like USDY or USDM for example, assets locked in the collateral account may continue to generate yields during the trading cycle, enabling unprecedented capital growth potential and ROI opportunities.

Secure Off-Exchange Trading with Ledger Enterprise TRADELINK

Whether you’re an asset manager, custodian, prime broker or broker-dealer, centralized digital asset exchange, or any other liquidity provider, or simply interested in learning more, our dedicated team of experts is here to help you. Contact us today and discover how Ledger Enterprise TRADELINK can effectively address your unique business requirements for your digital assets.

Let’s begin the journey together.

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Leonard KORKMAZ

Senior Product Marketing Manager – Ledger Enterprise

Adriano BERTINI

Head of Strategy – Ledger Enterprise