In a significant development for the cryptocurrency sector, TrueX, a new player in the exchange arena, has emerged from stealth mode just weeks ago, nearly two years after the catastrophic collapse of FTX. TrueX positions itself as a non-custodial, stablecoin-native exchange, offering what it claims to be a “strong alternative” to the traditional models dominated by legacy exchanges.
“The collapse of FTX highlighted the need for a safer and more trustworthy market model,” said co-founder Vishal Gupta in an exclusive interview with Blockworks. Gupta, who previously headed exchange operations at Coinbase, emphasized that the downfall of FTX created an opportunity to build a next-generation exchange that fundamentally separates trading from custody while integrating stablecoins for settlement.
Redefining Trust In Crypto Trading
What sets TrueX apart is its innovative custody model. While the exchange facilitates trading and settlement, Gupta highlighted that client assets are securely held by a qualified custodial partner—Paxos. “Whether driven by regulation or client demand, separating execution from custody is now essential for trust and security,” he noted.
As institutional adoption of crypto assets continues to rise, the demand for trusted venues that prioritize transparency, execution quality, and asset protection is more critical than ever. Craig Burel, general partner at Reciprocal Ventures, remarked on the significant advantage TrueX offers with its non-custodial platform and ultra-low-latency matching engine.
A Growing Market for Secure Custody Solutions
According to a recent report from OKX, the institutional digital asset custody market is expected to grow at a compound annual growth rate of 23% through 2028. This trend underscores the increasing need for segregation of duties in trade execution and asset custody, particularly as 80% of crypto and traditional hedge funds favor third-party custodians.
TrueX aims to leverage the strengths of stablecoins to facilitate faster and more efficient trading. With PayPal USD as its default settlement currency, the exchange is poised to capitalize on the growing significance of stablecoins in the market. Currently, the total market capitalization for stablecoins stands at approximately $170 billion, with Tether (USDT) accounting for around 70% of this total.
Looking Ahead – A Flexible and Secure Future
Analysts at Bernstein recently highlighted the systemic importance of stablecoins, reiterating their pivotal role in the evolving crypto landscape. As Gupta stated, “Starting fresh allowed us to design a more secure and flexible platform, ensuring we can be nimble in adapting to the evolving needs of the crypto market.”
With its innovative approach and commitment to security, TrueX is set to challenge traditional exchanges and cater to an increasingly discerning audience of crypto traders and institutional investors. As the industry matures, exchanges like TrueX may very well be at the forefront of a safer, more efficient trading environment.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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