Crossover adds Equinix NY4 and connects to Cboe Digital
“Institutional market structure in crypto is being reset. The collaboration of Cboe Digital’s world-class infrastructure and CROSSx, a first-of-its-kind, ultra-low latency ECN is groundbreaking. Cboe Digital promotes competition in trade execution, which may help to reduce trading fees.”
Crossover Markets has joined forces with Cboe Digital to offer a U.S.-regulated clearing solution for trades across multiple digital asset execution platforms.
With the new partnership, Crossover’s CROSSx becomes the first external technology venue to provide connectivity to Cboe Digital.
Crossover’s crypto ECN powers Exness, Pepperstone, ThinkMarkets, and TMGM
Crossover launched CROSSx in March. The execution-only cryptocurrency Electronic Communication Network (ECN) has already been tapped by some of the world’s most prestigious multi-asset brokers, including Exness, Pepperstone, ThinkMarkets, and TMGM.
Crossover avoids conflicts of interest by decoupling trade execution from custody and brokerage, giving institutions the ability to freely choose their own credit counterparties. The execution-only trading venue provider does not hold client funds, directly handle assets or carry counterparty risk.
The firm’s seed investment round was funded by a consortium of leading market participants in both traditional finance and digital assets that include Exness Ltd., Flow Traders, Gate.io, GMO Internet Group, Nomura’s Laser Digital, Pepperstone, Think Markets, TMGM, Two Sigma, and Wintermute Ventures.
Cboe Digital investors include IG’s tastyworks, Robinhood, Interactive Brokers
Cboe Digital, which has recently received the CFTC blessing for margin futures trading, allows market participants to trade spot and margin futures on the same platform, which fills a key gap in the US landscape and brings greater cost and operational efficiencies to enhance customers’ trading experience. In addition to margin futures, Cboe Digital’s spot market supports trading in Bitcoin, Bitcoin Cash, Ether, Litecoin, and USDC.
In November 2022, the digital asset subsidiary of Cboe completed the syndication of minority equity interests with a group of thirteen firms becoming investor partners in the Cboe Digital business. The list of investors include retail and institutional intermediaries, liquidity providers, and brokers.
Cboe Digital partners include B2C2, DRW, Galaxy Digital, GSR, Hidden Road, IMC, Interactive Brokers, Jane Street, Jump Crypto, Robinhood, Susquehanna International Group, tastyworks, and Virtu Financial.
“Institutional market structure in crypto is being reset”
Crossover unbundles execution from clearing, custody and brokerage, avoiding conflicts of interest and the captive nature of all-in-one providers. Crossover’s flagship product, CROSSx, offers institutional and intermediary clients a dynamic technology platform to execute spot cryptocurrencies, complementing Cboe Digital’s native exchange.
Cboe Digital Exchange’s clearing arm, Cboe Clear Digital, is a traditionally structured central counterparty for clearing and settlement.
Brandon Mulvihill, Co-Founder and CEO of Crossover, said: “Institutional market structure in crypto is being reset. The collaboration of Cboe Digital’s world-class infrastructure and CROSSx, a first-of-its-kind, ultra-low latency ECN is groundbreaking. Cboe Digital promotes competition in trade execution, which may help to reduce trading fees. This collaboration is a natural fit for CROSSx, and we are proud to be the first external technology venue to provide connectivity to Cboe Digital.”
John Palmer, President of Cboe Digital, commented: “We are pleased to provide a U.S. regulated clearing solution to Crossover’s clients. Cboe Digital’s clearinghouse supports multiple digital asset execution platforms including crypto spot and futures, which provides operational, technical, and collateral efficiencies to its members. We look forward to supporting Crossover’s clients in innovative ways as the digital asset market evolves.”
To complement this relationship with a US-based clearing broker, Crossover is expanding its data center footprint to Equinix’s NY4, adding to its existing presence in Equinix’s LD4 for international counterparties.
The onshore presence of production servers is expected to avoid unnecessary latency in execution, helping to ensure an enhanced experience for Cboe Digital and Crossover clients.
