CoinRoutes secures US patent for distributed Smart Order Routing solution for crypto algo trading
CoinRoutes’ distributed smart order router allows clients to keep control of their private wallets and keys, empowers users to execute orders across multiple venues simultaneously and securely.
CoinRoutes has secured a U.S. patent for its fourth-generation enterprise trading solution for the core technology architecture powering its Distributed Crypto-Currency Smart Order Router with Cost Calculator.
The Patent No.: US 11,580,600 B2 protects CoinRoutes’ distributed smart order routing technology claimed to be the most cost-effective and secure trading solution commercially available.
The SRO solution addresses exchange arbitrage and gives traders complete control of their assets, said the digital asset-focused algorithmic trading platform.
“Market dominated by platforms and algos designed for TradFi”
Ian Weisberger, CTO and co-founder of CoinRoutes, said: “Unfortunately for crypto traders, the market is dominated by platforms and algorithms that were designed for traditional finance and adapted to try and fit the emerging digital asset space, leading to subpar performance and decreased security.”
Dave Weisberger, CEO and co-founder of CoinRoutes, added: “When Ian designed the Distributed Smart Order Router on a napkin in 2017, I knew we were on to something. The architecture enables CoinRoutes to deliver a secure enterprise solution to each client, at a much lower cost than our competition without cutting corners on the terabytes of crypto market data that inform the decision-making of our algorithms. The award of our patent is recognition that CoinRoutes is providing our clients with a secure and cost-effective tool that wasn’t previously available to digital asset traders.”
Jon McLachlan, Chief Security Officer at CoinRoutes, commented: “As the old saying goes, ‘not your keys, not your crypto’. While most people think of that adage in the context of an individual’s crypto assets, the same applies to enterprise trading platforms. With the Distributed Smart Order Router, we’ve built the market-leading multi-exchange trading platform that allows you to retain full ownership and control over all of your assets.”
The cryptocurrency market structure is highly fragmented and not amenable to the unique trading characteristics of digital assets, CoinRoutes argues. A multitude of exchanges list crypto assets at different prices, and because most of those exchanges require traders to use exchange-specific digital wallets, many crypto market participants have to trade on one exchange at a time.
Such fragmentation results in the inability to execute trades at the most opportune time, factoring in asset price, trading fees, and counterparty risk.
CoinRoutes’ distributed smart order router allows clients to keep control of their private wallets and keys, empowers users to execute orders across multiple venues simultaneously and securely.
The CoinRoutes architecture features the Market Data Ticker Plant, Decision Engine, and Smart Order Router. When a client submits an order via CoinRoutes user interface or API, the Decision Engine–which subscribes to a consolidated data feed of exchange bids and offers–calculates a target price (CoinRoutes’ proprietary fair value model) to determine the optimal size and timing of orders to send to various venues.
In addition to providing users with the most efficient trades across exchanges for a fraction of the cost, the proprietary CoinRoutes platform offers the most secure trading experience on the market by allowing customers to maintain full control of their wallet and exchange keys.
CoinRoutes offers an institutional grade crypto trade Execution Management System (EMS) for best execution, with access to over 65 major CEXs, DEXs and Liquidity Providers covering more than 3,000 assets (spot, perpetuals, futures) via a single API or our trading app.
The firm’s algorithms include automated spread trading and multi-product trading in a single order to achieve the lowest costs while minimizing market impact and filling orders faster to reduce slippage.
CoinRoutes also has a built-in transaction cost analysis (TCA) that helps clients evaluate their trading performance across five benchmarks, including its proprietary Cost Calculator.
