Avelacom, a network service provider to the financial industry, announced on Tuesday that it is launching a ‘point of presence’ (PoP) in Dublin. The firm will be partnering with cloud services provider Interxion in order to launch its service in the Irish capital.
According to Avelacom, the decision to start providing low-latency services in Dublin was driven by developments in the cryptocurrency industry.
According to the technology provider, many cryptocurrency firms use Amazon’s cloud services, the servers of which are stored in Dublin. As a result, Avelacom said that its clients need better data flow across the US, Ireland, and Tokyo.
Thus, the company will be catering to the growing demand for low-latency trading in cryptocurrencies, which can better facilitate market making and arbitrage, amongst more sophisticated retail traders, institutions and exchanges.
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“The most innovative financial firms around the world need to access Dublin because of its growing cryptocurrency trading platforms,” said Aleksey Larichev, CEO of Avelacom. “[At] Avelacom, we work with clients across these industries.”
Brexit also to blame
It’s not only cryptocurrencies, however, that are pushing financial companies towards Dublin. Brexit, the news story that never ends, has also played a role.
Over the past few months, we’ve seen a number of major firms, including Barclays, Reuters and the Royal Bank of Scotland, saying that they have plans to up their staff numbers in Dublin.
As a result, there has been an uptick in the demand for low-latency services in Ireland, particularly as some key trading positions have been moved to the Irish capital by a number of firms.
“The carrier communities of interest which we’ve established here in Dublin and across Europe in the financial sector is of significant benefit to those we work with,” said Daniel Rosario, Business Development Manager at Interxion. “It’s because of this and our longstanding relationship with Avelacom that we are delighted to be partnering with them in their move to Dublin. We have no doubt that this sector will continue to thrive in the months and years to come.”