According to a Bloomberg report, a former private banking executive at Credit Suisse AG has launched Rulematch, a crypto trading venue aimed at catering to banks and securities firms.
David Riegelnig, co-founder of the Zurich-based startup, intends to capitalize on the increasing involvement of traditional financial institutions outside the US in digital assets.
Rulematch Launches Bitcoin And Ethereum Trading For European Clients
Rulematch, co-founded by David Riegelnig after leaving Credit Suisse in 2015, has recently initiated trading of Bitcoin (BTC) and Ethereum (ETH). The platform is now accessible to clients in most of the European Union, the United Kingdom (UK), and Singapore.
With notable investments from ConsenSys Mesh, Flow Traders, FiveT Fintech, and Ethereum co-creator Joseph Lubin’s ConsenSys Mesh, Rulematch has successfully raised $14 million and is currently in the process of securing additional funding.
According to Bloomberg, while many crypto exchanges offer a range of services, including trading and asset custody, Rulematch distinguishes itself as a trading-only platform. It matches buying and selling interests, mirroring the structure of traditional financial markets.
Additionally, Rulematch allows participants to settle their trades daily on a net basis, enhancing capital efficiency for traders. Notably, Rulematch has garnered the support of seven initial clients, including Banco Bilbao Vizcaya Argentaria and DLT Finance, with designated market makers such as Flow Traders and Bankhaus Scheich Wertpapierspezialist.
The platform relies on software developed by Nasdaq Inc. to facilitate trade matching, risk monitoring, and market abuse detection.
Crypto Potential Amid Major Banks’ Caution
While major global banks have generally remained cautious about crypto trading, David Riegelnig acknowledges the “vibrant scene” in Europe, the UK, and certain Asian markets.
The crypto market has witnessed a partial recovery from the downturn experienced in 2022, largely due to investors’ expectations of the US approving its first spot Bitcoin exchange-traded funds (ETFs) in the near future.
Gary Gensler, the Chair of the US Securities and Exchange Commission, has long criticized existing crypto platforms for their failure to segregate various aspects of their businesses, such as custody, market-making, and trading, potentially leading to conflicts of interest.
In line with this regulatory scrutiny, Rulematch, like EDX Markets in the US, adopts a “non-custodial” model, ensuring that clients’ digital assets are not held by the platform.
As the crypto market continues to evolve, the introduction of Rulematch and its offerings could potentially shape the landscape for institutional participation in the digital asset space, particularly in the European region.
At the time of writing, the largest cryptocurrency on the market, Bitcoin, is trading at $42,500, representing a 2.6% recovery over the past 24 hours.
Featured image from Shutterstock, chart from TradingView.com