Despite recent market volatility, it’s clear the institutional appetite for crypto is still growing. Increasing numbers of hedge funds, market makers, banks and even corporate treasury teams are attracted by the depth, utility and growing sophistication of the crypto market. It’s about more than just returns. They know they can’t miss out on this revolution in finance.
At the same time there’s a scramble to serve the needs of these exacting clients. Multiple exchanges have been set up that are pulling out all the stops to attract these institutional clients.
Institutions have a different set of priorities than retail investors. They have reputations to protect, they are dealing with their clients’ money and they’re scrutinized by regulators. To that end they’re looking for counterparties that are safe, stable and reliable. They also want counterparties that have access to deep pools of liquidity and a track record of service delivery.
Services, opportunities and execution
Gate.io’s Institutional Services (GIS) covers VIP clients from around the world, including high-frequency traders, hedge funds, market makers and other institutional clients. GIS offers these clients co-location opportunities so the institutions can get very low latencies (delays) for their trading strategies. This is supported by high frequency rates for both orders and cancellations (900 per second and 5,000 per second, respectively).
GIS has a wide breadth of assets, offering trading opportunities in over 1,300 coins and tokens. It also has a full suite of crypto products on top of spot trading, including futures and options, exchange-traded fund (ETF) trading, leveraged trading for all underlying products and quant trading, as well as yield driven products, secured lending and liquidity mining. These services are backed by a deep pool of liquidity, both in terms of the value of the coins traded and the number of users. Indeed, $12 billion is traded on its platform every day by 10 million users.
Institutions have a fiduciary responsibility to their clients to also deliver best execution. With Gate.io’s variable fee schedule, the higher the volume of activity, the lower the fee. This can be as low as negative 0.025% for those who are making markets in futures.
Gate.io’s new bespoke solutions provide over-the-counter (OTC) services as well as high-volume loans secured by collateral across trading platforms, accounts and currencies. Also, using Gate.io’s new API and SDK gives quick access to trading using familiar programming languages. In addition, Gate.io has a program that allows brokers to leverage this API offering to manage up to 300 sub-accounts and all related commissions.
The battle for the institutional services in crypto has only just begun. But it will be fought based on the level of service, the depth of liquidity on offer, the breadth of products available and a commitment to providing the best and fastest execution.
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