LONDON & TEL AVIV, Israel, April 11, 2023–(BUSINESS WIRE)–Cypator Inc. (“Cypator”), a crypto-trading electronic communication network (“ECN”) for institutional players, today announced that it is online with multiple participants institutions using the platform to exchange crypto-spot transactions.
Cypator is also live with prime broker Hidden Road, which acts as the counterparty to all trades and facilitates both credit risk and trade settlement. With the rise of institutional over-the-counter (“OTC”) trading, particularly since November last year, more and more players understand the importance of managing their counterparty risk and the need to diversify their sources. liquidity on a non-custodial basis. With Cypator’s relationship with Hidden Road, the market has opened up to indirect lending relationships allowing for a much larger business ecosystem.
The launch of new OTC Market Makers (Liquidity Providers) and the growing number of Taker participants needing a turnkey solution for accessing liquidity makes an ECN a natural evolution towards a model that has been successful in d other asset classes, such as foreign exchange.
Participants can be either market makers (liquidity providers) providing OTC-style liquidity and benefiting from distribution to all, or takers who receive unlimited liquidity from any connected market maker. The Cypator ECN currently supports spot trading on an undisclosed basis and will expand in the future to support other product types.
“As an experienced team, we have reviewed the crypto market and identified a gap in the trading liquidity infrastructure. We can now provide our clients with a risk-ready counterparty and complementary trading solution that leverages this to allow all players to trade with each other seamlessly.With Hidden Road, we have found a top-notch prime broker that focuses on being a “real” prime broker, while we will focus on delivering the best institutional grade trading solution,” said CEO and Founder Ayal Jedeikin.
The Cypator ECN supports trading via a Front End or via a FIX API. Based on AWS Cloud technology, the technology uses a low-latency smart order router to achieve the best execution and incorporates liquidity monitoring to ensure fair play.
“Cypator is a natural addition to the list of execution venues available to Hidden Road clients,” said Michael Higgins, Global Head of Business Development to the hidden road. “By providing our clients with credit intermediation on traditional and digital assets, Hidden Road allows our clients to select their own technology and liquidity partners and solutions. Cypator’s team and technology integrate well in that partner-focused mindset.”
The platform supports multiple execution workflows for spot trades, including undisclosed and disclosed trades as well as prime broker-based and direct custody workflows.
Cypator is an electronic communication network (ECN), meeting the needs of institutions to trade digital assets in a way that is optimized in terms of liquidity, risk control and transparency. Designed to trade digital assets and built on tradFi workflows, Cypator solves unique liquidity, workflow and trading technology challenges through a prime broker in disclosed and undisclosed ways or directly through a custodian. Bridging the gap between the traditional and the new, Cypator’s ECN provides unified access to trading digital assets, compensated by your prime broker and custodian setup.
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Serra Balls and Alfie Fernie, Eterna Partners
+44 (0)7775 763018