In traditional financial payment activities, the main process includes three parts: Clearing, Settlement and Settlement of Accounts. Clearing refers to the process of transaction data aggregation by institution and transaction type and calculating the settlement amount. Settlement refers to the entire process of net settlement of transaction data based on the Clearing result and completing the transfer of funds. Settlement of Accounts refers to the complete process of transferring funds between customer accounts. In China, UnionPay and Internet payment are the main settlement institutions, while the central bank is the institution mainly for Settlement of Accounts.
In the digital currency market, due to the concept of decentralization, the main participants in the process of digital financial payment in Clearing, Settlement, Settlement of Accounts include: Investment institutions, liquidity provider, project parties, exchanges, investors, etc. However, the settlement process mainly happens inside exchanges, because there are currency trading, multi- currency pairs trading, like USDT/BTC/ETH, contract leverage trading and so forth. Thousands of currencies are traded around the world every day without exaggeration, the 24- hour trading volume of cryptocurrency market is about $128.798 billion dollars, while its global market value is estimated at $172.441 billion dollars. All these financial trading requires exchanges to have a large stock of currencies, a more powerful and stable Settlement Institutions to ensure the liquidity during digital currency trading, and every trades of any kinds currencies is our biggest gain in settlement process.
At present, exchanges have already connected the whole processes of financial payment activities, while it is also interconnected among exchanges, liquidity providers of exchanges often serve multiple exchanges simultaneously. The main participating institutions of the entire market basically open more than one account in exchanges and arbitrage in different markets by taking advantages of price fluctuations of the whole digital currency secondary market, not completely distinguishing these several processes of payment activities, which leads to many hidden dangers:
- Users’ money is tied up in exchanges, there is none supervisory agencies in exchanges, they can misappropriate users’ capital for their own needs, which has occurred in many cases in digital currency exchanges history, Mt.Gox and Fcoin bankrupt are still vivid.
- The value of massive amounts of data is yet to be untapped. A variety trades completed in exchanges by investors generates a large number of trading data, while behind these data is the users’ electronic transaction behavior, those information belongs to them and can be authorized by commercial institutions to sell off as needed.
- The industry rates are not transparent. In order to compete for market share, different exchanges will lower their trading rate of transaction costs to capture market share and improve their own competitiveness by offering high rebates to market agents, which will ultimately result in exchanges not being profitable enough and turning to make money from users in other ways. Therefore, the external rates of exchanges is often not transparent, including a lot of hidden costs, these costs were eventually passed on to investors and users.
- Continuous risk transmission. Risk in financial markets cannot be eliminated, instead, it can only be transferred, so when something goes wrong in an exchange, this kind of problem will transfer to the whole market due to its industry connection mechanism. For examples, hackers made use of insufficient trading depth on bitstamp exchange to hit the market while going short in bitmex to make profit, the entire market has fallen sharply. The downtime of the Binance server caused a large number of exchange data in the industry to be erroneous, trading errors occurred and a large number of user lost.
Therefore, the establishment of a professional settlement platform between different exchanges, liquidity providers and project parties provides a good opportunity for the standardization of digital currency trading markets, solve the current situation of the digital finance industry, and offer a good solution for every coin holders. On the other hand, a single settlement platform provides ordinary investors with better rates and more stable income. In addition, it can retain customers’ massive data, giving reference value for their trading decisions and behavior improvement.
Eunion devotes itself to building a platform like that – a professional trading settlement platform combined with AI. In terms of settlement, Eunion will connect with major exchanges via its own efficient matching engine- Eunion Trade which is developed based on its rich settlement experience in traditional financial markets, utilizing the speed advantages of UHF trading enables the automated program to carry out settlement transaction through a large number of orders, places multiple orders through the method of seconds settlement or even millisecond settlement, and to obtain profits by placing orders in advance through some semi-automated procedures in the industry. Based on a large number of transactions, Eunion only specializes in settlement. Eunion’s settlement mode has earned recognition of international financial ventures firms and a capital injection. With the help of an elite team and self- developed top settlement mode, Eunion is the settlement institution of 132 digital currency exchanges in the world, and one of the world’s largest exchanges-the largest settlement institution of Huobi Exchange.
The innovation of Enuion will bring an all-sided reform in digital financial settlement. It follows the current development trend of global fintech, uses high- tech technology to enhance the core competitiveness of settlement through practice and analysis, as well as creates a perfect and intelligent settlement and profit system, playing a leading role in the digital transformation of financial industry. Enuion will always bear its purpose in mind, with the mission of developing a more advanced and more intelligent settlement trading system, allowing more investors to enjoy the convenience and great wealth brought by the financial digital transformation.