Fireblocks launches Liquidity Market to streamline stablecoin trading

New platform for stablecoin price discovery

Traditionally, payments companies seeking to buy stablecoins have needed to negotiate separately with individual over-the-counter (OTC) trading desks. This process typically involved logging in to multiple systems, manually comparing quotes that often expire quickly, and reconciling credit limits and balances by hand.

With the introduction of Fireblocks Liquidity Market, customers can now request quotes from various OTC desks simultaneously. The platform enables users to view side-by-side price options and execute trades with their chosen desk, utilizing existing credit lines and settlement agreements.

Ran Goldi, Fireblocks’ chief payments and network officer, stated that “the one step still happening outside the platform was the price discovery itself, and execution, negotiated desk by desk over chat and email. Bringing this inside means the desks our customers trust can all bid for every trade.”

First providers and partners

At launch, liquidity providers B2C2 and Zodia Markets are quoting prices on the platform. Other major OTC firms including Cumberland, FalconX, GSR, Hercle, Nonco, and Wintermute are expected to join in the near future. Design partners for the project included MoneyGram, OpenPayd, Reap, TapTapSend, and Zepz, all of which consulted on the platform’s development.

Fireblocks has clarified that it does not take a spread on trades. The company does not take custody of user assets during transactions, nor does it serve as an intermediary in the flow of funds. Settlement occurs directly between the customer and the trading desk.

The Liquidity Market covers all major stablecoins against the dollar, euro, pound sterling, and other Group of Ten (G10) currencies as of launch.

Enhanced transparency and control for traders

The platform provides users with a consolidated view of their credit, margin, and balances across all connected OTC desks. Fireblocks’ policy engine enables enforcement of trading limits and execution permissions, with quorum approval required before an account can be linked or an order placed.

Mini dictionary: G10 currencies refer to the ten most heavily traded currencies in the world, including the US dollar, euro, Japanese yen, British pound, Canadian dollar, Swiss franc, Australian dollar, New Zealand dollar, Swedish krona, and Norwegian krone.

According to Fireblocks, nearly $50 billion in stablecoin transactions were processed by trading desks sending payments to companies, banks, and fintechs over its network in the past year.

Industry feedback

Anthony Silva, senior vice president and treasurer at MoneyGram, commented on the new platform’s potential impact:

Being able to draw on multiple providers at once, rather than relying on a single desk, is how you build resilience into the hard to reach corridors.

Richard Usher, director of trading at OpenPayd, added:

Every new dealer used to mean a procurement cycle and an integration project before we saw a single quote.

Fireblocks stated that Liquidity Market is now open to its clients around the world. The company plans to expand the list of participating providers on an ongoing basis.