We are discussing Crossover Markets’ Crypto Platform Raises $12M in Funding:
Crossover Markets, an ultra-low latency execution-only trading venue for cryptocurrencies, has received a $12 million Series A round. Illuminate Financial and DRW Venture Capital supported the funding round.
Crossover Markets’ Crypto Platform
Crossover Markets runs CROSSx, a pure agency dealing with Electronic Communications Network (ECN) in cryptocurrency. CROSSx is considered one of the few ultra-low-latency ECNs in the crypto sphere. While the crypto exchanges rely on a central limit order book execution model, CROSSx has designed separate market data sessions and liquidity pools for every taker. Their rate card involves charging one basis point from the maker and the taker to guarantee participant fairness. In Q1 2024, Crossover Markets accomplished over $3.15 billion in net notional trading value. It has been driven by their quest for operational efficiency and high liquidity.
Ultra-Low-Latency ECN Model
Crossover Markets is one of the few true ultra-low-latency electronic communication networks (ECNs) in the crypto market. Crossover Markets is a different approach from traditional crypto exchanges that employ a limit order book trading model since there are independent market data sessions and liquidity pools for each liquidity taker. Their rate card is simple and only costs one basis point to both the maker and the taker, which benefits all parties.
Illuminate Financial and DRW Venture Capital
Illuminate Financial is a financial firm that specializes in constructing institutional-grade digital assets infrastructure businesses. They have been investing in this sector seriously since 2019. It consists of firms that operate in the space between centralized finance and decentralized finance structures. Illuminate is especially strong in providing resources to understand institutional needs and the marketplace.
In particular, DRW VC is focused on funding new market structure drivers at the early stages. They are a blend of conventional and digital platforms. DRW VC is among the top multi-asset market makers worldwide, and the firm’s input can be helpful in projects they fund. This is particularly true concerning their dedication to reducing counterparty risk, which perfectly aligns with Crossover Markets’ objectives.
Funding Boosts
In the first quarter of this year, the company transacted over $3.15 billion, amounting to approximately $3.15 billion in notional trading value. Mark Beeston, the founder of Illuminate Financial, will be part of the board of directors at Crossover. Flow Traders, Laser Digital, Two Sigma, Wintermute, and retail brokers are current partners. The funding increase for Crossover Markets puts them in good standing to grow and advance in the future of crypto trading.
Crossover Markets’ ECN model
The ultra-low-latency Electronic Communications Network architecture enables very fast deal execution. Independent market data sessions and taker liquidity pools reduce latency. Traders enjoy a low level of latency, so they can respond very actively to changes in the market. Due to this approach, where the platform has different liquidity pools for different types of traders, Crossover Markets targets a broad market. This leads to enhanced mobility or overall liquidity, which is positive for buyers and sellers.
Conclusion
Illuminate Financial and DRW Venture Capital are involved in supporting CM as a leading execution-only trading platform for digital assets. As an ECN broker, Crossover offers high speed and liquidity, making it an active trading center. The fair fee structure helps attract more participants who act as market makers or takers.
