Crypto ECN Cypator builds client momentum from institutional and traditional finance uptake
- More than 20 market participants are now signed or onboarding with a further 50 in advanced stages of contract negotiations
- Live as a crypto ECN with Hidden Road with over 100,000 trades successfully cleared to date
- ECN launched as an unbundled, execution-only solution, coupled with external Prime Brokerage to address a gap in digital asset trading market infrastructure
- Momentum on the back of significant increase in institutional OTC crypto trading since November 2022
- Market seeing the benefits of managing counterparty risk and diversifying liquidity sources in a non-custodial fashion
Tel Aviv, September 11, 2023: Cypator Inc. (“Cypator”), a digital assets trading Electronic Communication Network (ECN) for institutional players, today announced that since go live in Q2 2023, the business has attracted significant client participation. More than 20 market participants are now signed with a further 50 large trading institutions in advanced stages of contract negotiations. Cypator has successfully cleared more than 100,000 crypto trades with Hidden Road prime brokerage.
As an execution-only ECN for anonymous spot trading coupled with distribution via prime brokerage, Cypator delivers reduced counterparty risk and efficient settlement. The momentum of client uptake comes on the back of this important piece of de-bundled institutional trading infrastructure, with clients enjoying faster time to market, improved execution and reduced risk.
Cypator has benefited from the emergence of crypto over-the-counter (OTC) Market Makers, also known as Liquidity Providers, and the growing demand from Taker participants for a comprehensive liquidity access solution. This demand has paved the way for the natural progression of an ECN model. The model has already proven successful in other asset classes, notably foreign exchange (FX), since the early 2000s. In the FX market, ECNs have enabled anonymous trading and direct access to diverse liquidity pools, resulting in significant market share capture and the facilitation of increased trading volumes.
CEO and Founder of Cypator, Ayal Jedeikin, said: “We are delighted with the market reaction to our go live. The subsequent momentum reflects the growing understanding of participants of the benefits of a highly efficient trading model taken from traditional finance, which is transferable for the dynamic and constantly evolving world of cryptocurrencies. With Cypator’s robust, low latency, and hugely scalable technology, our network of Makers and Takers are now successfully trading with each other without requiring bi-directional relationships or onboarding.”