Kraken has launched a new colocation cross-connect service through Liquidity Connect, giving traders faster and more stable access to its digital asset exchange.
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The service is hosted at Equinix London, a major global financial data center, and is now available to both institutional and individual clients.
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Why It Matters Conceptually for FX/CFDs
Kraken’s colocation move mirrors the same infrastructure arms race that has long shaped FX/CFD execution quality. Colocation and ultra-low latency access are already standard in FX and index CFD venues, where execution quality depends on speed, stability, and predictable fill behavior.
Kraken rolling out similar low‑latency access in crypto shows that digital asset venues are converging toward the same performance and transparency standards seen in FX and CFD markets.
The new setup provides direct links between Kraken’s systems and Liquidity Connect’s servers, helping reduce delays to less than one millisecond. This allows traders to place orders and receive data almost instantly—a big advantage for anyone relying on quick market reactions.
The integration offers deterministic, ultra-low latency connectivity via direct fiber cross-connects to Liquidity Connect’s Virtual Private Servers (VPS) and dedicated bare metal servers. According to Liquidity Connect, the setup allows traders to connect to Kraken’s trading systems with sub-millisecond latency—an advantage for strategies requiring precision and minimal delay.
Continue reading: Kraken Halts IPO Plans as Weak Market Dents Crypto Valuations: Report
Dennis Miranda-Cruz, Head of Business at Liquidity Connect, said the partnership aims to deliver “the speed and security previously reserved for major financial institutions.” He added that the company’s goal is to maintain stable, low-latency connections that enhance execution quality for crypto traders.
Supporting Advanced Trading Strategies
The Liquidity Connect solution offers several operational benefits, including rapid deployment in less than 30 minutes, dedicated IP addresses, DDoS protection, and redundant power systems. Clients also receive 24/7 infrastructure support from Liquidity Connect engineers.
Kraken said the new service supports its ongoing efforts to strengthen market infrastructure and ensure fair access for participants. As crypto markets mature, exchanges are increasingly adopting institutional-grade connectivity to match standards in traditional finance.
The FX and CFD space has offered similar colocation and low‑latency setups for years, so Kraken’s move is very much in line with what’s already standard there.
Specialist providers already host FX trading servers in the same data centers as major FX venues and liquidity providers, offering ultra‑low latency “proximity” or colocation access. These setups connect clients directly to platforms like Hotspot, EBS, Currenex, and bank LPs from Equinix NY4, LD4 and similar hubs.
