Amid more friendly crypto regulations in the US, Crossover Markets, the crypto asset trading technology firm, is preparing to launch its services for US clients for the first time, the company announced in a post on X.
Founded in 2022 by foreign exchange veterans Brandon Mulvihill, Anthony Mazzarese, and Vladislav Rysin, the London-based company has so far focused its operations outside the US.
However, Trump’s return to the White House and his promises to support the crypto sector through friendlier regulation have altered the firm’s calculus. CEO Mulvihill said the team began laying the groundwork for a US launch following Trump’s election victory.
U.S.-based institutions want to trade crypto, and they’ll soon be able to via our CROSSx ECN. Read the latest from @business’s @sidcoins on our plans to expand into the market. https://t.co/J5fdY7YCdv#digitalassets #crypto #ECN #institutionalinvesting
CROSSx Model Brings FX Infrastructure to Crypto
Crossover’s platform, CROSSx, mirrors the electronic communication network (ECN) model popular in foreign exchange markets. The setup offers anonymous execution, deep liquidity, and tight spreads, characteristics often missing from retail-heavy crypto venues.
For institutional investors, the added appeal lies in its separation of trade execution from custody, addressing counterparty risk concerns that have dogged the industry since the collapse of several centralized platforms.
The platform promises low-latency execution and customizable liquidity pools, two features designed to appeal to professional trading firms accustomed to fast, flexible environments.
Execution
Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency. In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a crucial aspect of the business.
Liquidity
The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash. The most liquid asset of all is cash itself. In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. Nothing is more liquid than cash, while other assets represent varying degrees of liquidity.
Rising Volumes and Strong Institutional Appetite
The firm reported $13.5 billion in notional trading volume last year and says momentum is accelerating, Bloomberg reported. In June 2024, Crossover raised $12 million in a Series A round led by Illuminate Financial and DRW Venture Capital. That infusion helped scale operations and prepare for market expansion.
Now, with institutional interest climbing, the firm is reportedly considering a new fundraising round to meet demand. Crossover is not alone in its pivot toward the US market.
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Trump’s pro-industry posture has reignited interest among global crypto firms that had previously avoided the country due to regulatory hostility under the Biden administration and former SEC Chair Gary Gensler.
“Our growth is also driving continued increases in the percentages of trades that are ‘Order Crossing Order’ (OXO), “Mulvihill said. “Currently, roughly 10% of all trades executed on CROSSx are OXO, another differentiator in our platform’s capacity. This capacity and our unique execution model provide value to both the market maker and taker, as evidenced by our commercial model.”
Crossover Markets continues to expand its reach for the cryptocurrency electronic communication network (ECN), CROSSx. Last year, the company onboarded Talos, a provider of institutional technology for trading digital assets.
GCEX Group also tapped CROSSx for an institutional-grade electronic communication network to boost its offerings for professional investors seeking access to deeper liquidity and tighter spreads in spot crypto markets.