Differentiate between a Traditional Prime Broker and a Digital Asset Prime Broker.
A traditional prime broker primarily serves clients trading traditional securities, like equities and fixed income, offering services like clearing, settlement, and securities lending. A digital asset prime broker focuses on the cryptocurrency and digital asset space, offering similar services adapted for blockchain technology.
This includes specialized digital asset custody, on-chain settlement mechanisms, and access to decentralized finance (DeFi) protocols, alongside traditional prime services.
Glossar
Digital Asset Prime Broker
Function ⎊ A Digital Asset Prime Broker acts as a central counterparty and service provider, offering institutional clients a comprehensive suite of integrated services essential for professional trading in cryptocurrency and derivatives markets.
Broker
Delegation ⎊ In the context of decentralized finance, the function of a broker is often delegated to smart contracts or non-custodial execution layers, removing direct counterparty risk.
Traditional Prime Brokerage
Custody ⎊ Traditional prime brokerage services, when applied to cryptocurrency, extend beyond conventional securities to encompass the secure storage and management of digital assets, including tokens and keys.
Digital Asset
Asset ⎊ A digital asset, within the convergence of cryptocurrency, options trading, and financial derivatives, represents a quantifiable, tradable entity existing primarily in digital or electronic form.
Prime Brokers
Service ⎊ Prime brokers provide a consolidated service platform for institutional clients engaged in high-volume, complex trading of cryptocurrency and derivatives.
Prime Broker
Facilitation ⎊ A prime broker, within cryptocurrency derivatives and options trading, functions as an intermediary providing services to hedge funds and other large institutional investors.