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Crypto execution-only platform’s crossover markets raise $12 million
Crossover Markets, a super-fast execution-only trading platform for cryptocurrencies, has raised a $12 million Series A led by Illuminate Financial and DRW Venture Capital.
Cryptocurrency trading is evolving in such a way that it can satisfy both those traders who want the simplicity of a vertically integrated model, and those institutions higher up the ladder who want to choose their own custodian, or expect a choice of venues and counterparties that they desire. you are allowed to trade with.
Crossover markets, which last month in partnership with lead broker Hidden Roadis flying the flag as one of the few ultra-low latency electronic communications networks (ECNs) in the crypto industry, according to the company’s CEO Brandon Mulvihill.
Unlike the ECN model, cryptocurrency exchanges use a central limit order book execution model, meaning that it doesn’t matter if the exchange has one customer or a million customers, there is only ever one pool of liquidity and a session of market data, Mulvihill said.
“If we hire 50 liquidity buyers, we can have up to 50 independent market data sessions and 50 liquidity pools,” Mulvihill said in an interview. “What our model does is provide value to both the manufacturer and the buyer and this is reflected in our rate card. We charge one basis point to the manufacturer and we charge one basis point to the buyer.”
Crossover Markets handled more than $3.15 billion in notional trading value in the first quarter of this year, the company said in a press release.
Illuminate Financial founder Mark Beeston will join Crossover’s board of directors. Existing investors include Flow Traders, Laser Digital, Two Sigma, Wintermute, as well as retail brokers such as Exness, Porta.ioGMO, Pepperstone, Trademax and Think Markets.