Popular cryptocurrency exchange, KuCoin has launched a new feature that allows users to custody their own cryptocurrency assets while trading.
For the integrated feature, KuCoin used new technology from Boston-based startup Arwen, which allows traders for maintaining control of their private keys while still trading on a centralized exchange, as announced by Arwen on Tuesday.
Eric Don, the KuCoin president, confirmed the news –
“This service will enable investors to trade in a centralized platform without worrying about their fund safety.”
Arwen stated –
“With its technology, trades are executed via a ‘layer two’ blockchain protocol that allows traders to benefit from ‘the full liquidity and speed of the centralized exchange’s order book.”
The startup continued explaining that it helps in securing the trading between two parties with no need for trust by relying on the traded coin’s native blockchain.
For instance, security for trading bitcoin is offered by the Bitcoin Blockchain, while security for trading BTC cash is offered by the bitcoin cash blockchain.
Arwen said –
“This is in contrast to other approaches … which require the introduction of a completely new blockchain that traders must trust.”
As KuCoin’s usage of the technology is launched in beta mode, the service is currently limited to $500 per trade as a standard security measure.