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How Crypto Exchanges Can Entice Institutional Traders Today

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It isn’t easy being a digital asset exchange today. Competition in the sector has never felt more fierce to the hundreds of exchanges in the $350 billion+ crypto market. At Apifiny, we recognize why the valuable institutional trader segment is still largely absent: digital asset exchanges operate independently from each other, causing market fragmentation that creates friction in trade execution and in asset transfers across accounts. Digital asset exchanges that can quickly adapt their offerings to institutional traders’ requirements will be well-positioned to attract them. That’s why we created Roxe Global Instant Settlement Network—to make asset transfer move at the institutional-grade speed that professional traders need.       

Crypto exchanges have an opportunity to stimulate new growth by attracting institutional traders. However these professionals require more than just a trading platform: they must be able to fulfill large orders, without slippage, while moving capital in and out of accounts quickly.  

The global digital asset exchanges they choose to work with must meet those needs, offering the necessary liquidity and the speed advantage of instant deposits, withdrawals, and transfers. The appeal to institutional traders would increase even further if exchanges could provide instant settlement, requiring less capital to execute more trades.    

Apifiny realized that an entirely new paradigm was needed to closely align the growing field of digital asset exchanges with institutional traders’ requirements. With Roxe’s instant global settlement network, trading is transformed by unprecedented settlement speed.

A Fragmented Digital Asset Marketplace

Roxe is able to accelerate settlement by addressing the complexities of ongoing market fragmentation. As more exchanges have come online worldwide, digital asset trading has felt the effects: differing regional and local regulations force crypto exchanges to pair primarily with local fiat currencies to trade, isolating them and limiting their liquidity. As a result, today, there is no trading platform with a spot trading volume that exceeds a 5% share, causing a limited liquidity situation where prices differ between countries and exchanges. 

Not that traders see this situation in an entirely negative light—opportunities abound for traders who can take advantage of them. Their approaches include acquiring organic liquidity from other regions, cross-exchange arbitrage trades, and executing on strategies depending on more reliable signals from untapped global liquidity.      

However, institutional traders find that the leap into digital assets isn’t simple if they want to execute on their proven strategies. For example, they must use expensive workarounds such as holding accounts with multiple exchanges and then spreading their trades out among them–an inefficient system that causes poor capital utilization. Faster deposits, withdrawals, and cross-exchange transfers, would enable institutional traders to put more capital in action and make their trade opportunities more profitable. 

With Apifiny’s Roxe, institutional traders now have a powerful new solution to move past their obstacles to execution and make the most of these opportunities. Roxe’s blockchain, Roxe Chain, is the value transfer network between nodes, enabling instantaneous cross-exchange transfer, instant global settlement, and instant reallocation of funds across exchanges.

A Fast Lane for Value

Institutional traders are poised to make a significant impact on digital asset trading adoption—recent research from Fidelity Digital Assets, a subsidiary of Fidelity Investments, indicates almost 80% of 800 institutional traders surveyed are interested in entering digital assets. Attracting them matters, with their ability to bring up to a 200% increase in crypto trading volume. 

Roxe is the unified solution that can help crypto exchanges to solve these problems for institutional traders, and help them to earn outsize returns. Based on a lightning-fast blockchain, Roxe Chain Foundation’s Roxe Chain, Roxe’s instant global settlement network attracts professional traders who must fulfill large orders without slippage, while moving their capital quickly to where it’s needed most. 

Roxe empowers digital asset exchanges—as well as payment companies, consumers, banks, and central banks—to transfer fiat and digital currencies with other Roxe network members in seconds without any intermediary parties. All Roxe participants benefit from real-time clearing and settlement for digital assets and payments within a secure, reliable, and convenient ecosystem. 

The Roxe global instant settlement network provides institutions with access to a more unified, global market while participating exchanges can offer instantaneous deposits and withdrawals. Institutional clients can, in turn, rapidly transfer capital between exchanges and increase their capital utilization. 

Settlement speed also increases with Roxe, sparking cross-exchange strategy execution. If, for instance, a trader buys BTC on one exchange valued at $11,000, and then immediately sells it on another exchange valued at $11,150, they avoid potential price swings that would introduce risk into the trade while awaiting settlement–a process that traditionally takes 20 to 60 minutes or more. Using Roxe also leads to lower settlement costs and, therefore, higher profit margins.      

A Positive Cycle

Crypto exchanges that join Roxe gain a competitive edge in attracting institutional traders. In addition to superior price execution and liquidity, Roxe makes seamless movement and redemption a reality by gathering these processes within one network. It’s a highly compelling offering for professional traders seeking an advantage. 

As Roxe adoption grows, its network effects serve to build value and bring what had once been a fragmented exchange landscape together, driving revenue even further by increasing institutional volume. Exchanges that want to stand out join with Roxe, unlocking profitable new trading strategies for the institutional traders critical to crypto. 

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