Finery Markets, an OTC trading solutions provider for crypto businesses and institutions, has joined forces with Bequant, a crypto prime brokerage. Through the partnership, the service will cover over 150 crypto-to-crypto and fiat-to-crypto pairs.

Bequant Partners With Finery Markets

Launched by Finery Markets in April 2023, FM Liquidity Match is a service designed to facilitate institutional market participants and crypto enterprises with access to over-the-counter (OTC) institutional crypto liquidity . It offers a multitude of tools and services that streamline institutional crypto transactions and enhance trading activity tracking.

Bequant, leveraging its extensive client network, is set to utilize FM Liquidity Match's advanced technology and liquidity. This partnership will allow Bequant to expand its offerings, adding OTC liquidity to its current prime brokerage services.

George Zarya, the Founder and CEO of Bequant, expressed excitement about the partnership. He highlighted that the union combines the best elements of FX trading infrastructure, adapting it to the realm of crypto.

"This partnership is a testament to our commitment to delivering innovative solutions that meet the evolving needs of our clients," Zarya commented.

The introduction of this service comes amid an industry-wide expectation for institutional market players to move towards using prime-brokerage services. FM Liquidity Match's technology will facilitate companies planning to launch or expand their OTC prime brokerage.

FM Liquidity Match Wants to Boost Institutional Crypto Trading

Konstantin Shulga, the CEO and Co-Founder of Finery Markets, explained that FM Liquidity Match was developed with a clear focus on clients' needs. The service aims to revolutionize institutional crypto trading by offering a risk-managed approach, compliant reporting, and post-trade flexibility.

"We are absolutely confident that we can help Bequant further boost its digital assets prime brokerage services," Shulga commented. "Additionally, Bequant can leverage our cutting-edge technology to internalize customer flows, resell global inter-dealer liquidity to their customers, or even create their own ECN."

3/ Bequant will now utilize FM Liquidity Match technology and liquidity, leveraging its client relationships to offer an OTC prime brokerage service, ensuring it is able to expand its product portfolio and add OTC liquidity to its current prime brokerage services.

— Finery Markets (@finerymarkets) June 15, 2023

Since its establishment in 2019, Finery Markets has acted as an OTC multi-dealer non-custodial marketplace for institutional customers and a trading solutions provider for crypto markets. Bequant, on the other hand, is a comprehensive platform for professional digital asset investors and institutions, providing services such as prime brokerage and exchange.

Bequant was acquired by CrossTower, a New York-based crypto exchange, in November 2022. Additionally, the company introduced its prime brokerage service for digital assets in 2020 as a response to the increasing demands of institutional players.

Liquidity Issues in Crypto Space

Large-volume trading on a single exchange can present liquidity challenges for financial institutions. As revealed in the Crypto Trading Report for 2020 by PWC Switzerland and Finery Markets, more than half of the institutional cases typically involve trading digital assets across five or more exchanges to circumvent potential liquidity risks.

However, the process of examining the API of each trading platform, maintaining associated technical support, and managing cash balances across each exchange can be a remarkably time-consuming process for institutions.

Financial companies have demonstrated an increasing preference for executing trades OTC instead of centralized exchanges in recent years. OTC trading offers a more comprehensive selection of options than its centralized counterparts. It facilitates trade execution between two parties either via voice or electronically. This approach affords investors privacy and liquidity access beyond the traditional market limitations.