New cryptocurrency consortium aims to solve liquidity problems

Cryptocurrency trades are notoriously difficult to settle. Could a new platform help fix that?

San Francisco-based startup Blockstream Corp. launched the Liquid Network today, a trading platform that promises faster and more secure settlements of digital tokens. The platform connects cryptocurrency exchanges, brokers and financial institutions around the world. So far, more than 20 companies have signed up, including Bitfinex, Bitmex and OKCoin.

The goal is to improve liquidity, which has been an issue in the market, said Samson Mow, Blockstream’s chief strategy officer. “Liquidity across exchanges is definitively not there yet,” he said in an interview. “With the advent of Liquid — with faster settlement times — we should be able to improve it by making it faster and easier to transfer.”

Regulators have raised concerns about transparency on cryptocurrency platforms, including the risk that just a few trades could potentially skew trading volume. “Customers face…