Crypto trading electronic communication network (ECN) Cypator has launched its credit-based execution network, with a number of institutional partners using the platform to trade crypto spot transactions.
Those using the platform are either Market Makers (liquidity providers), distributing over-the-counter liquidity to the system, or Takers, seeking a turnkey liquidity access solution. The latter are able to receive unlimited liquidity from any Market Maker, through a model that has proved successful in other asset classes.
The Cypator ECN is based on Amazon Web Services cloud technology, using a low-latency smart order router to achieve best execution and embedding liquidity monitoring to ensure fair play on the platform.
Spot trading is available on a non-disclosed basis. The ECN supports multiple execution workflows for spot trading, with Cypator expecting to expand into other product types in the future.
Prime broker Hidden Road is acting as a counterparty to all trades on Cypator’s platform, enabling the credit risk and settlement of transactions. The partnership opens the market to indirect credit relationships and a broader trading ecosystem.
Ayal Jedeikin, CEO and founder of Cypator, says: “We can now provide our clients with a counterparty who is willing to take on the risk and for a complementary trading solution which leverages that to enable all players to trade with each other in a seamless manner. Hidden Road is focused on being a ‘true’ prime broker while we will focus on providing the best institutional grade trading solution.”
Michael Higgins, global head of business development at Hidden Road, adds: “Cypator is a natural addition to the roster of execution venues available to Hidden Road’s clients. In providing our clients with credit intermediation across traditional and digital assets, Hidden Road enables our clients to select their own partners and solutions across technology and liquidity.”
