The rise of institutional crypto trading started in the 2020s. However, some companies began tapping into the crypto sector long before it became so popular. For example, Fidelity (one of the four largest asset management companies in the world) started to mine Bitcoin in 2014, when it cost $400. Over time, the company launched its custody, brokerage, and crypto trading platform, Fidelity Digital Assets.
Among other well-known Institutional investors, you will find Grayscale Investments (an asset management firm), MicroStrategy (a software company), Galaxy Digital, and many other prominent companies.
Large companies investing in digital assets may face challenges in ensuring the safety of their assets and compliance with regulations, among other difficulties that still hold many investors back. This article explains how institutional crypto exchanges and their services like WhiteBIT AML https://whitebit.com/aml-service help solve the crucial requests of large market players.
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What are Platforms for Institutional Cryptocurrency Trading?
Obviously, regular retail trading platforms would not match the needs of institutional players. First, their liquidity is not enough to conduct large deals. Second, they often can’t offer sophisticated trading tools, APIs, and a sufficient level of security for institutions.
It’s important to note that institutions in crypto are large-scale financial entities, banks, hedge funds, and other organizations that allocate significant amounts of money to the crypto market. For that purpose, they use such platforms as WhiteBIT Institutional. Institutional trading of crypto on WhiteBIT offers a range of services that fully satisfy the requests of large market players. Let’s see what those services are.
What Services Do Institutional Traders Receive?
Here are the main services offered by institutional crypto exchanges:
- Custody. Institutional-grade custody solutions ensure the safekeeping of digital assets (cold storage, multi-signature wallets, and insurance coverage).
- OTC (over-the-counter) desks allow large-volume trade execution, providing liquidity without impacting the market price.
- Brokerage. Through a single account, institutions can trade with leverage, borrow digital assets, and access liquidity across multiple exchanges.
- API access. Institutional clients require robust and reliable API (Application Programming Interface) access for algorithmic trading. It facilitates institutional crypto trading and portfolio management based on real-time market data.
- Compliance and reporting. Institutional investors need to adhere to strict regulatory and compliance standards. Exchanges offer tools and services that help clients comply with KYC and AML regulations, as well as provide detailed reporting for auditing and tax purposes.
- Liquidity. Some institutional exchanges aggregate liquidity from various sources, including other exchanges and market makers. They help create deep liquidity pools, which are crucial for executing large orders with minimal slippage.
With the range of services provided by institutional crypto exchanges, such as custody, OTC desks, brokerage, and others, institutional investors can now trade digital assets more efficiently and securely.
