Arwen Enables Self-Custody for Traders of Centralized Crypto Exchanges

- Advertisement -

Centralized exchanges are a common security concern in the cryptocurrency ecosystem. As a single point of failure they can be strong-armed by governments, routinely targeted by hackers, or operators could pull an exit scam and elope with client funds. Despite these risks, they dominate cryptocurrency trading volumes. A new solution promises to enable trade to use centralized exchanges but without handing over control of coins to them.

Also Read: Belarus’ Largest Bank May Establish a Cryptocurrency Exchange

Not Your Keys, Not Your Coins

Boston-based startup Arwen (formerly Commonwealth Crypto) announced on Jan. 28 the release of its testnet trading application. The company aims to bring atomic swaps to mainstream cryptocurrency trading with its technology. Using the service, traders can deposit their coins in an onchain escrow, rather than with an exchange, removing the need to trust the centralized venue to handle the money. This allows them to maintain custody of their coins while trading on a centralized exchange without having to transfer coins to the exchange’s omnibus wallet or their keys to a third-party web server.

Arwen Enables Self-Custody for Traders of Centralized Crypto Exchanges

“If you do not hold the keys, you do not own your coins,” Arwen’s CEO Sharon Goldberg stated. “The ethos behind cryptocurrency is built upon a trustless, non-custodial technology. Centralized exchanges are needed for liquidity; however, the exchange of customer coins should be executed in a trustless way. We have solved … that problem.”

Kucoin Is Already on Board

Arwen also announced it is teaming up with the popular Singapore-based global cryptocurrency exchange Kucoin to offer its customers the possibility of using the new service. In addition to Kucoin, the startup reports being in talks with other exchanges about integrating the protocol. It currently supports trading on BTC, LTC, BCH, ZEC and ETH as well as ERC20 tokens.

- Advertisement -

Arwen Enables Self-Custody for Traders of Centralized Crypto Exchanges

Kucoin President Eric Don commented: “KuCoin has been working hard to ensure the security of the exchange itself, and we are one of the few exchanges that are rated A in terms of security by ICOrating, but we are also exploring other ways to satisfy users who have extreme security requirements and do not trust any third party. [Arwen’s] escrow mechanism enables users who have extreme security requirements to have a higher sense of security in transactions.”

What do you think about using a protocol such as Arwen’s for trading? Share your thoughts in the comments section below.

- Advertisement -

Images courtesy of Shutterstock.


Verify and track bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. Also, keep up with your holdings, BCH and other coins, on our market charts at Satoshi’s Pulse, another original and free service from Bitcoin.com.

Source

Previous Articles:

- Advertisement -

Latest News

Prosecutors Weigh Charges Against Dragonfly Over Tornado Cash Ties

U.S. prosecutors are considering charges against Dragonfly Capital over its investment in Tornado Cash’s...

Prosecutors Weigh Charges Against Dragonfly Capital Over Tornado Cash

Prosecutors in New York said they may file criminal charges against employees at Dragonfly...

US, UK Employees Risk Data Leaks Using Chinese GenAI Tools, Study Finds

Employee use of Chinese generative AI tools in the US and UK is widespread...

Chris Larsen Sells $175M XRP, Sparks Centralization Concerns

Chris Larsen, Ripple's co-founder, transferred $175 million in XRP during a recent price rally,...

GENIUS Act Spurs Debate Over Stablecoin Redemption and Run Risks

The U.S. GENIUS Act on stablecoins has raised concerns about the safety and redemption...

Must Read

Top 10 Best Cryptocurrency Lending Platforms

This article needs an update. Many of the platforms listed here have closed their doors.In this article, we are presenting the best cryptocurrency lending...