The aim of the collaboration is to avoid conflicts of interest by decoupling trade execution from custody and brokerage.
Customers of Hidden Road, which provides prime brokerage and other trading services, are gaining access to the cryptocurrency trading platform run by Crossover Markets though a new collaboration, reports by a statement.
Crossover operates an execution-only platform, meaning customers need a credit sponsor to trade. In contrast to centralized exchanges, customers cannot open an account and send money as there’s no settlement option or exchange option, only execution.
The aim of the collaboration is to avoid conflicts of interest by decoupling trade execution from custody and brokerage, allowing institutions the potential to freely choose their own credit counterparties.
Brandon Mulvihill, co- founder and chief executive officer of Crossover stated in an interview with CoinDesk that since the fall of cryptocurrency exchange FTX Trading Ltd and the present hostility from United States regulatory authorities toward CEXs, TradFi institutions have been scared away and do not want to face centralized exchanges bilaterally anymore.
“Institutions want to trade cryptocurrency the way they would with any other traditional investment class,” Mulvihill said.
Hidden Road customers will have access to CROSSx, Crossover’s execution only communication network (ECN), to execute digital currency spot transactions, reports by the news release. Hidden Road is the 1st company to onboard with CROSSx, which Crossover launched in March.
Mulvihill stated that there are as of now 50 customers onboarding, with 60 percent of these from TradFi corporations and the rest cryptocurrency native.
“We believe this whole lot of removal of operational friction from the ecological system will materially increase trading volumes and decrease the expenses of trading,” Mulvihill said.
Crossover’s seed financing round was funded by Flow Traders, Nomuera’s Laser Digital and Wintermute Ventures, between others.