2020-7-31 11:22 |
Huobi, the popular blockchain and cryptocurrency exchange company, today announced the launch of Huobi Institution, a crypto asset management platform and custody services for institutions. The platform matches qualified institutional investors and high-net-worth individuals with fully-vetted quantitative trading teams in a secure and reliable environment managed by Huobi.
With the new offering, Huobi aims to help institutions access high-quality quantitative investment channels—managed by top crypto asset managers and quantitative trading teams. In addition to an expansive network of rigorously vetted crypto asset managers, Huobi’s asset management platform offers a comprehensive product ecosystem, including custody services, asset storage via Huobi Wallet, and customized crypto asset products with a fully-managed service, including data analytics and third-party performance disclosures and ratings.
“As the crypto market expands globally, we’re seeing growing demand for more nuanced trading products and services, especially from the institutional sector. These investors want access to high-quality quantitative investment platforms but up until recently the market has been highly fragmented. By bringing both sides of the market together in one platform, we want to build the bridge between traditional financial markets and the digital asset economy.”
– Ciara Sun, Vice President, Global Markets at Huobi Group
All crypto asset managers and trading teams on Huobi’s asset management platform undergo a rigorous vetting process, including full company disclosures, and must have a proven track record trading on Huobi’s exchanges for a minimum of six consecutive months.
Quantitative trading teams must also provide historical transaction data as part of an extensive audit by Huobi, which includes a deep analysis of historical positions and trading activity to determine the team’s actualized performance and risk management ability. Managers are required to deposit a percentage of the crypto asset as an investment risk margin based on product type and associated risk levels.
Huobi will offer investors customized crypto asset products based on personalized investment requirements and risk preferences, including Fixed Return Plan, Capital Protected Plan, and Capital at Risk Plan. Investor’s assets are escrowed in Huobi Wallet to ensure asset safety, and trading strategies are restricted to mature products in top exchanges only.
As the platform operator and administrator, Huobi will be responsible for project registration and consignment, investment confirmation, client account management, and asset liquidation and settlement. Project assets are managed in Huobi accounts and support cross-exchange strategy and execution. Investors retain full ownership of their assets and asset managers are granted access only to trade those assets. Huobi will also report all investment performance data to investors on a regular basis.
Huobi’s crypto asset management platform also brings more transparency to digital asset management by providing an objective evaluation system of net (crypto asset) value, which allows investors to track true ROI. The platform’s monitoring system connects to APIs provided by crypto asset managers and trading teams across multiple exchanges to measure crypto asset value and ROI in real-time.
Crypto asset products on the platform are also monitored for risk indicators like leverage ratio, drawdowns, and deposits and withdrawals to limit exposure and establish a liquidation mechanism as needed to protect investors.
At launch, trading platforms supported include Huobi, Okex, and Binance. Trading products supported include Spot, Cross Margin, Isolated Margin, Futures, and Perpetual Swap, but leverage for Futures and Swaps will be limited to 20x or lower. Assets supported include USDT, BTC, ETH, EOS, BCH, LTC, TRX, ETC, XRP, ADA, DASH, ATOM, BSV, XLM, and ZEC.
CryptoNinjas » Huobi launches crypto asset management platform for institutions
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