Broctagon Launches Crypto Aggregator
Posted by Colin Lambert. Last updated: September 14, 2021
Fintech solutions provider, Broctagon Fintech Group, has launched WorldBook, what is says is a “global crypto movement” focused on solving key liquidity issues plaguing the industry.
The firm claims WorldBook is the world’s first crypto STP network with the largest aggregated liquidity pool. The initiative aims to introduce a universal standard of liquidity for digital assets, uniting both processes and technology within the crypto industry under a single framework.
Unlike the highly streamlined FX or securities financial markets, Broctagon says crypto trading is highly fragmented with significant price disparity across exchanges. This is largely because of existing market norms where exchanges operate in a silo within their orderbook, limiting their offerings and therefore prices to the participants within.
WorldBook combines the orderbooks of all connected exchanges – they can connect for free the firm says – to create a unified orderbook that enables multilateral liquidity flow. Instead of being confined to local orderbooks which may represent less than 1% of the total industry, exchanges now gain access to 85% of the market, Broctagon says, adding this is made possible by the Nexus 2.0 aggregator, the driving engine that powers the WorldBook with smart order routing.
“Despite the gaining acceptance of crypto, it remains a “wild west” with no dominant technology or standard in which it operates,” says Don Guo, co-founder and CEO of Broctagon Fintech Group. “With the WorldBook’s price aggregation, we found that bitcoin had an average negative spread of $10, even amongst the major exchanges. This means that with over $15.5 trillion in trading volume over the past year, traders could have saved $5.7 billion in spreads and this is for bitcoin alone, which is already the most efficient and liquid digital asset. The price disparity could only be worse for the thousands of altcoins across many smaller exchanges.
“We engineered the WorldBook infrastructure taking a page from the fundamentals of FX interbank liquidity,” he continues. “With our experience as a regulated FX liquidity provider, we believe the prime-of-prime model has the potential to disrupt the industry and increase crypto trading volumes by more than 400% in the near future.”
The WorldBook is part of what Broctagon says is its “commitment to propel the crypto industry towards regulatory compliance, adoption, and maturity”. As a Singapore-based company it adds it is looking to support the city state’s agenda to be a centre for digital assets.
“Liquidity challenges exist for newer and established exchanges alike,” argues Guo. “The former requires extensive capital for marketing to capture enough users for a liquid orderbook while the latter often pay hefty fees for external market maker services to drive profitability. The WorldBook is a solution for both. With universal prices and unprecedented depth, exchanges can focus on other aspects of the business to bring further value to their clients.”
Broctagon further points out that globally, crypto exchanges that are not within the top three percentile account for only less than 10% of total trading volume and adds, “With its symmetrical flow of liquidity, the WorldBook levels the playing field for newer exchanges to contend and explore new frontiers, driving growth for the entire industry at large.”
The initiative has received support from the non-profit Singapore Fintech Association and social digital assets exchange XT Exchange, whose CEO, Weber Woo, says, “We recognise how a standardised framework for liquidity can ensure steady supply and demand for our clients. We shall support Broctagon as they look to introduce cohesive standards for the entire industry and elicit greater public adoption of cryptocurrency.”