Backpack, the company behind the immensely popular Mad Lads NFT collection on Solana, has announced a major development in the world of cryptocurrency. Today, they unveiled the launch of a regulated crypto exchange, Trek Labs Ltd FZE, which will operate under the name “Backpack Exchange.”
The Dubai Virtual Assets Regulatory Authority (VARA) has granted the Virtual Asset Service Provider (VASP) license for Exchange Services to Backpack Exchange. This license exclusively pertains to Backpack Exchange and does not extend to the other virtual asset products and services the company provides. Over the past five months, Backpack Exchange has meticulously developed a cutting-edge exchange platform.
It incorporates innovative features like zero-knowledge proof of reserves (zk-proofs), Multi-Party Computation (MPC) for custody, and low-latency order execution. Furthermore, the company has secured licenses in multiple global jurisdictions and established premium fiat on and off ramps for its users.
The synergy between Backpack Exchange and Backpack Wallet, an unregulated product, aims to provide users with a seamless transition from fiat to on-chain applications. Existing Backpack Wallet users, who already enjoy access to diverse, decentralized applications (dApps) and unique executable NFTs (xNFTs), can now conduct cryptocurrency trades directly within the app.
Backpack CEO’s Vision For Crypto Transparency
Armani Ferrante, the CEO and Founder of Backpack emphasized the need to bring an end to the era of obscure crypto exchanges that go against the core principles of our industry. Using an exchange with a single point of failure, lacking proof of reserves, or lacking auditability should not be considered the norm.
Ferrante further stated that:
A verifiable, unforgeable ledger is the exact problem blockchains solve, and Backpack Exchange is taking full advantage of that. Using cryptographic techniques like zk-proofs, MPC, and state machine replication, Backpack Exchange hopes to raise the bar for transparency and compliance to demonstrate the best this technology has to offer. Don’t trust, verify.
Backpack Exchange will initiate a private beta for existing members of the Backpack and Mad Lads communities in November, offering spot cryptocurrency trading functionality. The platform is scheduled to go live to the public in the first quarter of 2024.
Meanwhile, the Backpack Exchange team, supported by compliance experts from prominent financial institutions, will work on adding various trading functionalities like derivatives, margin trading, and cross-collateral services while simultaneously securing additional licenses worldwide.
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