OVEX, the largest digital asset prime brokerage and exchange in South Africa has just announced its next big move with the launch of a full-service forex solution, OVEX FX.
“We plan to be in 20 countries before the end of 2022,” says OVEX founder and CEO Jon Ovadia. “Our plan is to build our network in Africa as fast as possible. The rate of crypto adoption in Africa is massive and there are multiple players in this space, but no one is doing it on the scale we are doing it in SA and plan to do in Africa, where we will be able to issue a quote for a large-scale buyer of crypto and offer almost instant settlement. We are able to do that because we have deep liquidity and big financial backing. ”
Placing an order for $ 10 million (R146 million) worth of bitcoin (BTC) on a regular crypto exchange may take days to settle. OVEX is able to settle that almost instantly, thus avoiding the price slippage and higher costs that come with a trade that has to be broken up into bite-sized chunks.
Ovadia says OVEX is South Africa’s leading prime brokerage and digital asset exchange in SA, and plans to export that model to other countries.
“The same formula that we use in SA will be exported to other countries. We are able to offer deep liquidity for those who want to buy large volumes of cryptos, and we offer tight spreads and low fees for institutional and retail clients to buy, sell and earn crypto. Plus we also offer a forex service for all major currencies. ”
Click here to learn more about OVEX FX
Fiat currencies and stablecoins available under one roof
OVEX offers the widest range of stablecoins in SA, covering the US dollar, euro, Swiss franc, yen and other major currency pairs. Clients are able to park their profits from crypto trading in these stablecoins without leaving the crypto space. In addition to that, it is able to offer a full forex service for those seeking to on-ramp or off-ramp using fiat currencies. This allows clients to trade forex and cryptocurrencies under one roof.
This service is aimed not just at crypto enthusiasts, says Ovadia.
“We are seeing a lot more corporate and institutional interest, as well as exporters, speculators, arbitrageurs and remittance companies.
“It is becoming ever more important for sophisticated traders to have access to an AZ service as the lines separating cryptocurrency and traditional finance become increasingly blurred. Major banks are now invested in BTC. So too are hedge funds, sovereign wealth funds and nation-states like El Salvador. Traditional players are becoming increasingly crypto-centric as regulators and cryptocurrency market makers, like OVEX, forge a regulatory environment favorable to even the most vanilla wealth managers. Being able to access both traditional forex markets as well as their cryptocurrency counterparts all from a single avenue is crucial to traders and investors alike. ”
Why did OVEX decide to launch a forex trading desk?
“We see a ton of opportunity to add a technology layer on top of the common forex offerings currently available. This will allow us to offer the lowest rates and fastest settlement in the FX industry, ”says Ovadia. “We have developed our own proprietary trading technology which has given our forex arm an edge over established competitors. Now we plan to take this into Africa and to markets further afield, such as Australia, the UK, India and Turkey. ”
One of big markets Ovadia is eyeing is remittances, which the World Bank estimates is worth 2.5% of GDP in sub-Saharan Africa. This is money sent home by citizens living and working abroad. In some countries, such as Gambia, these remittances account for nearly a quarter of GDP. However, the average cost of sending $ 200 by traditional means was 8.2% in sub-Saharan Africa, and about 4.9% in Asia. Sending remittances using crypto ‘rails’ is far cheaper, usually averaging around 1%.
“We see remittances as a huge market in Africa, as well as India and Turkey – in fact, all over the world,” says Ovadia.
“We see the remittance companies as our clients, so we would be a wholesaler for them, rather than dealing with individuals at the retail level.”
Brought to you by OVEX.
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