Markets
Crypto Execution-Only Cross-Platform Markets Raise $12M
Crossover Markets, a super-fast-executing cryptocurrency trading platform, has raised a $12 million Series A led by Illuminate Financial and DRW Venture Capital.
Crypto trading is evolving in such a way that it can cater to both participants who want the simplicity of a vertically integrated model, as well as institutions further up the scale who want to choose their custodian or expect a choice of venues and counterparties that they’re allowed to trade with.
Crossover Markets, which last month partnered with prime broker Hidden Roadis flying the flag as one of the only ultra-low latency electronic communications networks (ECNs) in cryptography, according to the company’s CEO Brandon Mulvihill.
In contrast to an ECN model, cryptocurrency exchanges use a central limit order book execution model, which means that it doesn’t matter whether the exchange has one customer or a million customers, there is only one liquidity pool and one market data session, Mulvihill said.
“If we onboard 50 liquidity takers, we could 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 price list. We charge a basis point to the manufacturer and we charge a 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, Portão.ioOGM, Pepperstone, Trademax and Think Markets.