Clear Junction has announced the launch of a new escrow accounts solution which will act as a DVP (delivery versus payment) protection “for those wishing to trade in digital currencies and fiat.”
The recent headlines surrounding FTX and other digital currency exchanges “has led to a drop in trust regarding how some digital currency exchanges operate.” In response to this, Clear Junction has been “working closely with Finery Markets to develop a solution that provides peace of mind and restores trust in a sector that still holds significant potential.”
With the new escrow accounts solution, Clear Junction acts “as a settlement agent and provides a fundamental financial service that ensures each entity involved in a fiat/crypto transaction gets what they agreed to.”
Finery Markets has “become the first digital asset marketplace to utilize the escrow accounts solution for its participants – Clear Junction provides them with the payment rails they need to safely settle the fiat part of the trades.”
Importantly, Clear Junction is “not involved in the settlement of the crypto assets but relies solely on the transaction data available publicly on the blockchain. All major blockchains are supported by the service.”
The team “processes the fiat part of the transaction from the buyer’s to seller’s Clear Junction account and holds it in escrow.”
Once the crypto has been sent – “and this is verified through the blockchain – Clear Junction releases the fiat funds to the seller of crypto.” This ensures that “all parties get exactly what they are expecting and Clear Junction acts as an independent entity providing the escrow accounts to guarantee peace of mind for both participants.”
Dima Kats, Chief Executive of Clear Junction, remarked:
“In light of the problems we have seen with FTX and other crypto exchanges, people and businesses are understandably concerned about whether their funds are safe. With our new escrow accounts solution, we have used a financial product that has existed for centuries and applied it to a sector that has been around for a little over a decade or so. By doing this, we help to build and restore trust in digital currency transactions and ensure that settlement risk is eliminated.”
Konstantin Shulga, CEO of FineryMarkets, commented:
“As a non-custodial venue, Finery Markets enables peer-to-peer trading among its participants. In the post-FTX world it is extremely important to deliver advanced clearing, settlement and risk management tools that mitigate counterparty risks. We are proud to partner with Clear Junction, an established player in the payment industry, in order to bring one of the first DVP solutions to our clients and partners.”
The escrow accounts solution is “open to Clear Junction clients and is designed for use by crypto exchanges who want to provide their clients with an additional layer of security.”