Is it possible to build a global digital asset marketplace that’s as large and liquid as the fiat FX behemoth? Japanese exchange QUOINE says it is, and has launched LIQUID — an ambitious attempt to interconnect all fiat and blockchain commerce. It aims to address professional traders’ frequent complaint that crypto markets aren’t, well, liquid enough.
A Global, Liquid Trading Platform for All Cryptos and Fiats
The idea of LIQUID is to provide a “World Book” of orders for any unit of value that exists. That would include all popular cryptocurrencies, national currencies, and blockchain assets. QUOINE sees a roaring trade in ICO tokens, where buyers and issuers can buy or sell in large volumes wherever they live.
Cryptocurrency, we often hear, will bank the unbanked and open up investment opportunities to everyone. However world asset liquidity is “siloed” in advanced economies — which have all the money but can only trade within their own borders, and emerging economies — where the un/underbanked live. The latter need access to the wealthier countries’ platforms, and investment opportunities.
The video below explains basically how the World Book takes a trader’s order in any unit and draws on a global pool of available trading liquidity. It does this by combining all exchange liquidity sources behind the scenes and matching them on its front-end, the “Prime Brokerage”.
And because there’s always a native token these days, QUOINE has “QASH” (QUOINE’s marketing department are big fans of caps lock). QASH is LIQUID’s reserve currency and can also be used on the company’s other platforms like QUOINEX (the original exchange) and altcoin trading platform QRYPTOS.
QUOINE describes LIQUID as a “financial utility” — CEO Mike Kayamori sees a future where all manner of companies can produce tokens of value, and trade them for anything else.
The Technology’s There, but Can ICOs Survive?
Speaking to Bitsonline, Kayamori acknowledged the battering ICOs have taken from powerful governments in 2017, namely China. He said token issuers will need to be cognizant of the tougher regulatory environment, to stay out of trouble.
“We went through great lengths to make sure that we complied,” he said.
“A rule of thumb is that if it looks and smells like a security, then it is a security. And if an issuer is offering an equity token, then he must comply with regulation of each country where they offer.”
Kayamori said that QUOINE is ready to move forward after receiving Japan’s second official cryptocurrency exchange license last Friday. It completed a stressful six-month application procedure in which bitcoin trading companies had to prove their dedication to compliance to Japan’s stern regulator, the Financial Services Agency (FSA).
Despite the exuberance, QUOINE isn’t actually allowed to sell QASH or other ICO tokens to Japan residents. QUOINEX trades a raft of national fiats but only BTC, BCC/BCH and ETH on the blockchain front. QRYPTOS is also unavailable in Japan.
As well as its new headquarters in Tokyo, QUOINE still maintains its original office in Singapore, where it first opened in 2014.
QUOINE’s LIQUID white paper and details of its own ICO are all available on its website.
Does the crypto economy need a global exchange? Tell us what you think.
Images via QUOINE
Note: the author of this article does not hold or trade QASH tokens.