Crossover Markets, an ultra-low-latency electronic communication network (ECN) for cryptocurrencies, recently secured $12 million in a Series A funding round. Illuminate Financial and DRW Venture Capital led the round, marking a significant milestone for the superfast execution-only trading platform.
Key Investors and Board Additions
Mark Beeston, founder of Illuminate Financial, will join Crossover’s board of directors, bringing valuable expertise to the growing company. Other notable investors include Flow Traders, Laser Digital, Two Sigma, Wintermute, and retail brokers like Exness, Gate.io, GMO, Pepperstone, Trademax, and Think Markets.
Unique ECN Model
Crossover Markets sets itself apart as one of the few ultra-low-latency ECNs in the crypto space. Unlike traditional crypto exchanges that use a central limit order book execution model, Crossover Markets offers independent market data sessions and multiple liquidity pools. This structure caters to both liquidity makers and takers, providing them with distinct advantages.
In a traditional exchange model, a single liquidity pool serves all clients, regardless of the number of participants. In contrast, Crossover’s ECN model allows up to 50 independent market data sessions and liquidity pools for 50 liquidity takers. This approach offers more flexibility and efficiency for high-frequency traders and institutions looking for tailored solutions.
Financial Performance and Partnerships
Crossover Markets handled over $3.15 billion in notional trading value in the first quarter of this year, showcasing its growing influence in the cryptocurrency trading landscape. The platform recently partnered with prime broker Hidden Road, further expanding its capabilities and reach.
CEO Insights
Brandon Mulvihill, CEO of Crossover Markets, emphasized the value proposition of their model. “Our model provides value to both the maker and the taker, and that’s reflected in our rate card. We charge one basis point to both the maker and the taker,” he stated in an interview. This fee structure aims to attract a diverse range of market participants, from high-frequency traders to institutional investors seeking efficient and cost-effective trading solutions.
Crossover Markets is at the forefront of a significant evolution in crypto trading. The platform’s ability to cater to both vertically integrated models and institutions that prefer choosing their custodians and trading venues makes it a versatile player in the market. As the crypto trading ecosystem continues to mature, platforms like Crossover Markets are well-positioned to meet the diverse needs of market participants.
