Crypto execution-only platform crossover markets raises $12M

Crossover Markets, a superfast execution-only trading platform for cryptocurrencies, has raised a $12 million Series A led by Illuminate Financial and DRW Venture Capital.

Crypto trading is evolving such that it can cater to both those players who want the simplicity of a vertically integrated model, as well as those institutions further up the ladder who want to choose their custodian, or expect a choice of venues and counterparties that they're allowed to trade with.

Crossover Markets, which last month partnered with prime broker Hidden Road, is waving the flag as one of the only ultra-low-latency electronic communication networks (ECNs) in crypto, according to the firm’s CEO Brandon Mulvihill.

In contrast to an ECN model, crypto exchanges use a central limit order book execution model, which means it doesn't matter if the exchange has one client or a million clients, there's only ever one pool of liquidity and one market data session, Mulvihill said.

“If we onboard 50 takers of liquidity, we can have up to 50 independent market data sessions and 50 pools of liquidity,” Mulvihill said in an interview. “What our model does is provide value to both the maker and the taker and that’s reflected in our rate card. We charge one basis point to the maker and we charge one basis point to the taker.”

Crossover Markets handled over $3.15 billion in notional trading value in the first quarter of this year, the company said in a press release.

Illuminate Financial founder Mark Beeston will join Crossover’s board of directors. Existing investors include Flow Traders, Laser Digital, Two Sigma, Wintermute, as well as retail brokers such as Exness, Gate.io, GMO, Pepperstone, Trademax, and Think Markets.