Multi-asset liquidity provider Broctagon on Wednesday announced the launch of a new crypto liquidity aggregator.
Dubbed NEXUS 2.0, the new service will tackle the price disparity of digital currencies on different exchanges, providing a similar trading experience to the traders.
Commenting on the development, Don Guo, chief executive of Broctagon, said: “We believe NEXUS 2.0 can transform crypto trading. Pricing discrepancies are currently holding the industry back from reaching its full potential. Offerings like this are essential in order to make the market a fairer place for all participants, allowing smaller exchanges to have a truly competitive offering from the get-go.”
A major issue with the crypto traders
Price discrepancies among exchanges are one of the major concerns of the crypto trading industry. This also breeds a new kind of profiteers – arbitrages – who hop from exchange to exchange to make profits on price differences.
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According to Broctagon, the price discrepancies are the result of the lack of any messaging system between the exchanges. The impact is largely seen on smaller exchanges with less trading volume, where the trading prices often drift away from the market value.
The liquidity aggregation engine channels price feeds from top global exchanges, with smart order routing to make sure clients get the same price, regardless of the exchange they trade on, the company explained.
“We’ve built our business on identifying problems in the market and working on innovative solutions to fix them, and NEXUS 2.0 is no different. This could encourage involvement from larger players from the traditional finance space,” Guo added.
“As financial institutions see evidence of similar trading capabilities and pricing consistency to the traditional markets, they could be encouraged to dive into crypto completely, tipping the scales towards mainstream acceptance.”