OTC Trades Case Study: Enhancing Privacy for Market Makers
Problem
Market makers and OTC desks struggle with maintaining privacy during large trades for their clients (crypto companies, crypto funds, Foundations). Public blockchain ledgers expose trade details—such as size and timing—making them susceptible to front-running and market manipulation by competitors or bots.
Solution
Zaïffer’s confidential OTC trading platform uses Fully Homomorphic Encryption (FHE) to encrypt trade details. This ensures that sensitive information remains private while the transaction’s integrity is preserved and verifiable on the blockchain.
Outcome
Market makers and OTC desks execute large trades with increased trust and efficiency. Privacy is enhanced, reducing the risk of information leakage and market impact, ultimately fostering a more secure trading environment.