On September 8, Enclave Markets announced the launch of a completely confidential trading platform for institutional investors called Enclave Cross.
This new service is currently still in beta, but the developer will soon provide Whitelist rates for users to experience. Enclave Cross allows crypto traders to perform block-based transactions off-chain. As traders move their assets off-chain, Enclave's technology matches traders' orders with counterparties interested in that transaction without revealing wallet addresses. Thereby becoming a “dark zone” for OTC transactions at market prices, where transactions are done privately using smart contracts.
The capital is inspired by the "dark pool liquidity" that has been around for a long time in the traditional market. However, these centralized models can leak information, reducing the privacy interests of investors, with Barclay and Credit Suisse for example in 2016. Enclave hopes to address that with approval process of “adjudicators”, similar to smart contracts. However, organizations also need KYC before using Enclave Cross's services. At the same time, the company also carries out sanctions screening and anti-money laundering supervision.
As David Wells, CEO of Enclave said, know asset managers, hedge funds and systematic players in the crypto market are all asking for a product like this. . Although there have been several parties that have come up with solutions like Kraken in 2015, SFOX in 2020 and some crypto brokers also offer similar services, but there is no competitor. currently offers more of the same anonymity capabilities than Enclave Cross. Enclave Cross currently supports trading avalanche (AVAX), ether (ETH), bitcoin (BTC) and USD Coin (USDC) and is set to have a number of companies and investment funds begin testing the service.
Last August, the Tornado Cash event sparked a lot of controversies over transaction privacy. So whether an anonymous service like Enclave Cross can continue to grow, or will it be strangled by other forces.