Digital Gamma Develops Repo Protocol for Cryptocurrency

JERSEY CITY, N.J., Dec. 10, 2019 /PRNewswire/ — Digital Gamma announced today its newest offering, TPR (Tri-Party Repo). Utilizing the TPR protocol, two counterparties can engage in a borrow/lend transaction with greater transparency and reduced capital requirements, lowering risk and cost as compared to current market solutions. 

Ari Pine, co-founder of Digital Gamma said, “Repo sits at the center of modern financial markets. Digital Gamma is committed to bridging the gap between traditional finance and crypto. Efficient borrow/lend can increase everyone’s customer base.”

Currently, when borrowing crypto, it is common to post 150% collateral with a market maker while the market maker posts nothing.  With TPR, Digital Gamma acts as an administrator between two counterparties.  It’s a transparent bilateral transaction that requires both parties to post margin.  Default risk is mitigated with frequent rebalancing — keeping the notional…