South Africa’s crypto exchange for institutions has arrived

OVEX has uniquely positioned itself as SA’s cryptocurrency prime broker for institutional players.
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The kind of white glove service high net worth clients are accustomed to in the traditional finance realm has now landed in the crypto-sphere – a sign of the growing sophistication in this market.

OVEX, SA’s largest prime crypto broker, has positioned itself as a cryptocurrency market maker in SA with the depth of liquidity necessary to service high net worth individuals and institutions such as hedge funds and asset managers.

“There is a need for a more sophisticated crypto exchange servicing the higher net worth and institutional markets,” says OVEX CEO Jon Ovadia. “These clients are looking to trade large crypto volumes and would struggle to get their orders filled on a typical exchange. We don’t have that problem because of our strong balance sheet and deep liquidity. We can handle orders of virtually any size.”

Source: OVEX

Ovadia notes a growing interest in cryptos from institutional players and high net worth individuals looking for exposure to an asset class that has the potential to deliver out-sized returns.

“The sharp sell-off in financial markets across the board has been particularly severe in cryptos, and more notably altcoins, but history tells us that the market will turn and when it does, cryptos will more than likely overtake their traditional financial counterparts.”

Crypto adoption poses some interesting use cases for hedge funds and asset managers. One of these is the opportunity to arbitrage crypto price mis-matches between different exchanges, without exposure to volatile price moves.

But other use cases have emerged as potentially even more interesting for institutional players. OVEX now has presences in multiple African jurisdictions, including Nigeria, Ghana, Botswana, Mozambique and Senegal, and will soon offer fiat on-ramps in local currency for clients who want exposure to these countries.

That means payments and remittances can be made using fiat, crypto or stablecoins, and all of this in seconds.

“Notwithstanding what has happened to the TerraUSD stablecoin, it is a fact that the biggest growth in in the crypto space is in stablecoins, backed by real assets such as the US dollar, and the huge advantages these bring over traditional forex.” says OVEX marketing lead Nick Bergonzoli. “Beyond a payments infrastructure that may very well supplant the SWIFT network. Stablecoins also offer market- neutral yield generating opportunities when deployed in the decentralised finance (DeFi) realm. This can prove complicated for novice crypto investors. But that is why OVEX offers interest bearing stablecoin accounts. This makes these high-yield opportunities accessible to all.” You can find out more about OVEX Interest Accounts here.

OVEX is also taking strides in the world of traditional finance with a full service forex solution – OVEX FX. Forex intermediation is done by subsidiary OVEX FSP (a licensed financial services provider and authorised treasury outsourcing company). The arrangement enables investors to seamlessly acquire forex for investment purposes in line with exchange control rules.

Sign up to OVEX FX today.

OVEX’s A-Z solution has uniquely positioned the exchange to attract large institutions now joining the fold. A substantial portion of the prime broker’s impressive volumes, however, are attributed to the growing interest in stablecoins from corporate players. Stabelcoins offer some of the more interesting use cases in the crypto-sphere because of the ability to transact 24/7 (unlike banks, which only transact during trading hours) and settle within seconds (again, banks can take several days to clear a cross-border transaction).

The need for a an institutional grade solution for trading cryptocurrency is driven in part by the lack of regulation in the space, and that has kept many institutional investors sitting on the sidelines, waiting for some regulatory certainty. OVEX is well prepared for the day when the regulatory environment matures, and requires all customers to undergo Know Your Customer and Anti-Money Laundering procedures. OVEX also undertakes extensive due diligence on all corporate accounts. This bodes well with institutional players whom have strict reporting standards and regulatory oversight.

Several other steps are required to provide comfort to institutional players: a strong balance sheet, deep liquidity to handle large trading orders, institutional grade digital asset security and audited financial statements (OVEX is audited by leading accounting firm Mazars).

OVEX also makes it extremely easy for institutions with large client bases to easily trade on behalf of their clients as authorised brokers.

Bergonzoli says OVEX is uniquely positioned to address the institutional market in SA for several reasons:

  • The ability to offer clients large credit lines and trade instantly;
  • A dedicated trading team is on hand 24/7;
  • Instant execution;
  • State-of-the-art institutional grade security (predominantly offline ‘cold storage’ backed up with multi-signature best practices);
  • Zero price slippage (prices are locked on orders of any size);
  • OVEX offers the largest range of currency pairs and digital assets in SA;
  • The ability to transact across multiple jurisdictions;
  • Robust balance sheet and credit history; and
  • Competitive transaction pricing for large volumes.

Clients get access to an experienced crypto trading team to help explain some of the use cases for cryptos that would assist them in achieving their investment and performance outcomes.

“This is a relatively new field for many institutional players, so we dedicate a lot of time to helping them understand what is happening in the crypto space, and we spend time understanding their goals,” says Bergonzoli.

“There’s a lot of interest among institutions in using crypto rails for stablecoins in forex, which can vastly reduce the costs and friction associated with traditional forex.”

Forex intermediation is undertaken by OVEX FSP (Pty) Ltd and not OVEX (Pty) Ltd. OVEX (Pty) Ltd is a juristic representative of OVEX FSP (Pty) Ltd, FSP number 50776. OVEX (Pty) Ltd markets forex intermediation and sourcing on behalf of Ovex FSP (Pty) Ltd.

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