Why the Quant Network/AX Trading partnership might be a game-changer for the crypto industry.

So far, 2019 has been an extremely beneficial year for blockchain and the cryptocurrency industry, the year brought a number of game-changing moves and developments.

One of the most recent ones comes in the form of a partnership between two companies – Quant Network and AX Trading.

Who are Quant Network and AX Trading?

Quant Network is a pioneering tech firm that provides regulatory and financial technology, as well as interoperability in financial services, payments, and capital markets infrastructure. It allows trusted transactions of digital assets, and it is trying to create a more secure digital future.

The company’s efforts are aimed at helping everyone, including individuals, enterprises, and regulators and governments. Quant Network provides effective, functional solutions for the issues revolving around interoperability.

It was long believed that interoperability is the key for taking the next step in the evolution of the digital asset industry, and Quant Network managed to achieve it by creating the world’s first blockchain OS, known as Overledger. This single invention holds the potential to change the crypto and blockchain industries forever, and drive blockchain adoption around the world.

The company itself is based in London, UK, and it is committed to developing a safer, faster internet that people will be able to trust.

On the other hand, there is AX Trading LLC. This is a technology-enabled and fully registered broker-dealer and ATS (Alternative Trading System) operator. In fact, the company has developed the first ETN (Electronic Trading Network) in the market, calling it the AX Trading Network.

The network is aimed at institutional digital asset traders, and it allows them to easily connect and trade with others in a much safer and more secure environment than your typical crypto exchange. The AX Trading Network attracted a lot of attention due to its advanced and effective methods of reaching out to targeted counterparties, thus allowing greater liquidity for institutional traders. With liquidity generally being more and more withheld from the market, this solution comes as a trustworthy, safe way for institutions to get involved in digital asset trading. AX Trading is also fully registered with the US SEC.

Why is the partnership important?

According to AX Trading LLC’s recent announcement, the company has partnered up with Quant Network, and the two will combine their technologies to bring a solution that might change the digital asset industry forever.

As an alternative trading system (ATS) AX will be able to use Quant Network’s technology – its Overledger blockchain operating system – to enable universal interoperability for security tokens and other digital assets. As many likely know, legitimate security tokens are fully compliant with security regulations. This is what makes them safe for institutional investors to work with.

Security tokens are different than most cryptocurrencies, which the US regulators see as securities that are not compliant with regulations. Their developers have sold them as utilities, however they are able to be used as an investment opportunity. To comply with regulations the developers need to meet many requirements, including proving the utility inherent in the token. Some cryptocurrencies will struggle to meet this standard.

Meanwhile, actual securities are typically avoided by most exchanges, and even if they were not – typical exchanges are deemed unsafe by institutions who wish to trade in securities.

This is why the partnership between the two firms is so important. As a regulated secondary trading market, AX plans to use Overledger to enable interoperability between different assets, and speed up the evolution of traditional capital markets infrastructure. The end goal here is the facilitation of the mass implementation of regulated, interoperable digital assets.

What does trading on AX look like.

One important feature that lets AX stand out from other exchanges is the fact that it does not show orders to everyone, nor necessarily to no one. Instead, it allows institutional traders to choose for themselves who gets notified and what information they will share. This allows them to reach out to specific entities, and still keep their business secrets hidden, simply by protecting their own identities and intentions.

The trading process consists of four steps: Initiation, Invitation, Participation, and Execution.

Initiation includes one trader sending an initiated order to AX, which is routed to the AX ATS through one of the company’s broker sponsors. This would lead to the next phase where the initiator chooses whom to invite and how much information to share. Once the invitation arrives, the invited parties can review the shared details and choose whether or not to participate, which marks the Participation stage. The final step is Execution, where the orders are brought together after the AX goes through the auction period, and the final matching is performed.

Digital assets about to go viral.

It is safe to say that the market adoption of digital assets is on the rise, and it is likely only going to continue down this path. With security tokens generally being more useful and safer than traditional cryptos due to the possibility of digitisation of real-world assets, it is assumed that these will be the coins that institutions will target first.

With that in mind, it was imperative for their transferability and easy movement to be enabled, which is why Quant Network and AX Trading’s partnership is a big deal for both, crypto and traditional finance industry.

AX’s CEO, George O’Krepkie commented on the move, stating that the company is looking forward to partnering with Quant, as their technology will allow the security token exchange to easily communicate with investors, traders, issuers, and even regulators. At the same time, Quant Network’s CEO, Gilbert Verdian, stated that Quant is delighted to work with AX and foster evolution of new decentralised capital markets and exchange infrastructure via Overledger.

With the partnership underway, digital assets will be easily transferred and traded across DLT networks of the regulated exchange. Meanwhile, AX Trading’s team also created several liquidity and trading solutions across the world’s fixed-income and equity markets.

Both firms realise the importance of interoperability when it comes to digital securities technology, as well as potential benefits to the traditional finances markets. They were also pleased to announce that the first fully-interoperable digital asset offering might arrive quite soon, likely in January 2020. The next year will certainly see the listing of various interoperable securities and digital assets, which will be an exciting time for the industries of digital and traditional finances alike.