New Crypto ECN Launches
Posted by Colin Lambert. Last updated: April 12, 2023
A new ECN has launched into the increasingly crowded crypto space as players at the institutional end of the spectrum pivot from exchanges to the OTC model.
Cypator is now live with “multiple institutional participants” with prime broker Hidden Road acting as the central counterparty. It says the increase in OTC liquidity providers and taker participants in need of a turnkey solution for liquidity access makes an ECN a natural evolution into a model which has been successful in other asset classes, such as foreign exchange.
The ECN supports spot crypto trading via a front end or via a FIX API and is based on AWS Cloud technology, with a smart order router. It also, the firm says, embeds liquidity monitoring “to ensure fair play”. It supports multiple execution workflows for spot trading, including undisclosed and disclosed trading as well as prime broker and direct custody-based workflows.
“As an experienced team we looked at the crypto market and identified a gap in the trading liquidity infrastructure,” says CEO and Founder Ayal Jedeikin. “We can now provide our clients with a counterparty who is willing to take on the risk and for a complementary trading solution which leverages that to enable all players to trade with each other in a seamless manner. With Hidden Road we found a best of breed prime broker who is focused on being a ‘true’ prime broker while we will focus on providing the best institutional grade trading solution.”
Michael Higgins, global head of business development at Hidden Road, adds, “Cypator is a natural addition to the roster of execution venues available to Hidden Road’s clients. In providing our clients with credit intermediation across traditional and digital assets, Hidden Road enables our clients to select their own partners and solutions across technology and liquidity. Cypator’s team and technology fit well within this partner-first mindset.”