Top cryptocurrency exchange KuCoin today, announced that is launching a new feature that purportedly enables its users to upkeep their own crypto assets while they trade on the platform.
The new feature from KuCoin is said to comprise of new technology from the Boston-based startup Arwen, which will allow traders on the platform to maintain and have full control of their private keys when they transact on centralized exchange systems.
According to the announcement, adoption of the Arwen technology allows trades to be performed through a “layer two” blockchain protocol, which supposedly will ensure users benefit from the “full liquidity and speed of the centralized exchange order book.”
The technology will enable secure transactions between parties by relying on the traded cryptocurrency’s native blockchain. For instance, security for trading bitcoin, bitcoin cash is provided by the bitcoin and bitcoin cash blockchain respectively.
“This is in contrast to other approaches … which require the introduction of a completely new blockchain that traders must trust.”
As this development is been initiated in a beta mode, Sharon Goldberg, CEO of Arwen related the service at the start is been limited to $500 per trade for security measure.
Requirements
In order to access this feature, Goldberg added that interested traders should have a verified know-your-customer (KYC) KuCoin user account to use the service.
Interested traders should neither be from the U.S. nor countries regulated by the U.S., Sharon Goldberg added.
KuCoin president Don said:
“Arwen and [KuCoin] paid special attention to KYC/AML in this collaboration and we care more about compliance than most existing [decentralized exchanges].”
KuCoin also disclosed it is making moves to establish its own decentralized exchange platform, as confirmed by Michael Gan, KuCoin CEO.
He acknowledged that the collaborative effort with Arwen is just a first move by the firm to realize fund custody in a decentralized method and certainly secure users’ digital assets.
Binance is another cryptocurrency exchange on the verge of launching its decentralized exchange.
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