Digital asset technology firm Crossover Markets Group is collaborating with Cboe Digital to offer a clearing solution for trades across digital asset execution platforms.
Crossover’s flagship product, CROSSx, has become the first external technology venue to provide connectivity to Cboe Digital.
Launched in March, CROSSx is Cossover’s execution-only cryptocurrency electronic communication network (ECN). The network has been backed by US-based hedge fund Two Sigma and Nomura.
CROSSx provides institutional and intermediary clients a technology platform to execute spot cryptocurrencies, which complements Cboe Digital’s native exchange. Cboe Digital’s clearing arm, Cboe Clear Digital, is a traditionally structured central counterparty for clearing and settlement.
“The explosion of institutional trading volumes in the cryptocurrency market will not happen until fungibility is widespread,” Brandon Mulvihill, co-founder and chief executive of Crossover, told the TRADE.
“Fortunately, Cboe Digital is among the pioneers in offering a clearing solution that addresses fungibility and allows institutions to trade on CROSSx while facing Cboe Digital as their credit counterparty. The announcement of this partnership is a hallmark day for the industry.”
Coinciding with this new relationship with a US-based clearing broker, Crossover’s data centre footprint will expand to Equinix’s NY4, building upon its existing presence in Equinix’s LD4 for international counterparties.
Production serves onshore is expected to avoid needless latency in execution, offering an enhanced experience for Cboe Digital and Crossover clients.
“We are pleased to provide a US regulated clearing solution to Crossover’s clients,” said John Palmer, president of Cboe Digital.
“Cboe Digital’s clearinghouse supports multiple digital asset execution platforms including crypto spot and futures, which provides operational, technical, and collateral efficiencies to its members. We look forward to supporting Crossover’s clients in innovative ways as the digital asset market evolves.”