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, reportsย by a statement.
Crossover operates an execution-only platform, meaning customers need a credit sponsor to trade. Inย contrastย toย centralized exchanges, customers cannot open an account and send money as thereโs 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 theย 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 FTXย Tradingย Ltd and theย present hostility from Unitedย States regulatoryย authorities toward CEXs, TradFi institutions have been scared away and doย not want to face centralized exchanges bilaterally anymore.
โInstitutions want to trade cryptocurrency the way they would with any other traditional investment class,โ Mulvihill said.
Hidden Road customers will have access to CROSSx, Crossoverโs execution only communication network (ECN), to execute digitalย currency spot transactions, reportsย by the newsย release. Hidden Road is the 1st company to onboard with CROSSx, which Crossover launched in March.
Mulvihill stated that there are asย ofย now 50 customers onboarding, with 60 percent of these from TradFi corporations and the rest cryptocurrency native.
โWe believe this wholeย lotย of removal of operational friction from the ecologicalย system will materially increase trading volumes and decrease theย expenses of trading,โ Mulvihill said.
Crossoverโs seed financing round was funded by Flow Traders, Nomueraโs Laser Digital and Wintermute Ventures, between others.
James Rubin.
