In this interview, Renato Cricca, Product Head Crypto Custody at SDX Web3, discusses the institutional-grade solution developed by SDX Web3 and RULEMATCH for trading, settling, and custody of crypto assets. By combining RULEMATCH’s efficient, low-latency trading platform with SDX’s highly secure custody services, this partnership delivers a comprehensive, end-to-end infrastructure tailored for financial institutions.

With seamless post-trade clearing and settlement, along with fast and secure collateral management, institutional investors can operate with greater confidence, efficiency, and security in the evolving digital asset market. In this conversation, Renato explains what sets this solution apart, how it meets institutional needs, and the business opportunities it unlocks.

Hi Renato! SDX Web3 and RULEMATCH announced a partnership in October to offer financial institutions an integrated solution to trade, settle, and manage crypto assets. What sets this offering apart for institutional clients?

In the fast-paced digital asset space, time-to-market, cost-efficiency, and scalability are critical for clients seeking a robust business case with strong revenue potential and an attractive offering for their clients. Our solution not only meets these criteria but excels by separating trading and custody functions. This separation reduces counterparty risk and allows each component to focus on its core competencies: RULEMATCH delivers sophisticated trading services, while SDX Web3 ensures the highest security standards with a Swiss-based infrastructure. This unique combination provides a secure, efficient, and scalable solution that stands out in the market.

How does the SDX Web3 x RULEMATCH solution enhance post-trade efficiency for institutional clients?

A key advantage of our solution is its fully netted, post-trade settlement process—something not available in the market today. So, in other words, institutions can post collateral, then trade all day long, and at the end of the trading day, their buy and sell orders are “netted out”. This is highly capital-efficient and optimal for financial institutions. In addition, settling post-trade while not holding collateral at the exchange provides a clean off-exchange solution, effectively addressing counterparty risk management concerns for institutions.

Institutional investors require a trusted, compliant, and efficient infrastructure to operate in digital asset markets. Given SDX Web3 and RULEMATCH’s institutional focus, how does the institutional-grade setup ensure security and transparency while also reducing risk for financial institutions?

Building a trusted, compliant, and efficient infrastructure is no small feat. It requires deep expertise and a proven track record. SIX has a long history of creating and managing robust financial market infrastructures, making this capability part of our DNA. RULEMATCH complements this by offering a professional trading service built on infrastructure with decades of experience in traditional finance. Together, we elevate the standards of digital asset trading, providing a seamless, reliable, and compliant solution that financial institutions can trust.

Compliance is a fundamental pillar of digital asset markets, yet navigating the complexity of regulatory requirements can be challenging for financial institutions. Our solution removes these hurdles by offering a comprehensive infrastructure that meets the same high standards as traditional asset classes. By ensuring robust AML/CFT compliance, transparent custody, and market surveillance mechanisms, the combined SDX Web3 and RULEMATCH solution provides financial institutions with the confidence and security needed to operate in this space. Since both SDX Web3 and RULEMATCH only work with regulated financial institutions, participants benefit from a secure and institutional-grade trading environment, free from unregulated counterparties.

Can you walk us through how SDX and RULEMATCH integrate trading, settlement, and custody to provide a seamless institutional-grade solution?

Our infrastructure is designed with a clear separation between custody and trading. Clients have crypto accounts with SDX Web3 for standard custody activities and settlement, while a dedicated collateral account is used for trading on RULEMATCH. Once this account is funded, clients can trade in proportion to the amount of clearing collateral that they hold.

At the end of the trading day, RULEMATCH calculates the net settlement amounts, which are settled the following day on a T+1 basis through SDX Web3 custody accounts. This structure allows institutions to efficiently manage their collateral, increasing or decreasing it as needed, ensuring smooth and uninterrupted trading activities.

Additionally, the post-trade settlement mechanism with clearing margin collateral enhances efficiency and risk management for institutions, reducing capital burdens while ensuring seamless trade execution.

The combination of speed and security is highly attractive for financial institutions, regardless of the market or asset class. How does the SDX Web3 and RULEMATCH solution strike the right balance between performance and risk management?

Absolutely. Our offering delivers high-speed trade execution, with latency down to 25 microseconds (comparable to FX and equities markets), while maintaining rigorous security standards. Clients benefit from rapid collateral adjustments via SDX Web3 custody and seamless integration with the RULEMATCH trading venue through standard FIX connections. Security is equally prioritized, with institutional-grade custody, fully segregated wallets, and the backing of SIX Group, ensuring that institutional clients can trade with confidence without compromising on safety.

For financial institutions looking to build or expand their crypto offering, cost-effectiveness is a key point. What are the key advantages of working with SDX Web3 and RULEMATCH in this area? What new business opportunities does the combined solution offer for financial institutions?

Our solution allows institutions to enter the digital asset market with minimal upfront investment, as onboarding with SDX Web3 and RULEMATCH is as straightforward as working with a traditional custodian and exchange. Clients don’t need to build new crypto-specific processes or infrastructure, significantly reducing costs. Furthermore, by operating on a real trading venue rather than through a broker, institutions can achieve better margins, optimize capital efficiency by avoiding pre-funding requirements, and scale their business effectively.

Additional opportunities include sponsored access to RULEMATCH, access to prime brokerage services, and expanding their client base to include hedge funds and other institutional investors.

Thank you, Renato!