Crypto Trading Gets Smarter Trade Routing


Startup Voyager Digital is bringing the trappings of agency brokerage to the world of crypto-asset trading.

The digital broker opened its doors in late 2018 to offer familiar brokerage capabilities to its retail and institutional clients.

“Where in the equities worlds do customers open accounts on the NYSE, NASDAQ, or AMEX,” noted Steve Ehrlich, CEO of Voyager Digital. “You don’t. You open with a broker and say, ‘You take care of finding the best execution.'”

Voyager Digital has aggregated market feeds from 12 global exchanges and market makers to create its internal order book, he explained. “We know when we give a customer a price, we can execute at that price or better.”

Through trading with crypto exchanges, liquidity providers, and market makers, Voyager Digital claims it can execute crypto trades at the microsecond level on and off the various blockchains.

The crypto brokerage recently released version 2.0 of its smart order router, which supports trading in 20 coin pairs against bitcoin (BTC). The previous version supported trading only against the US dollar and stable coins, according to Ehrlich.

The latest version of the router also enables Voyager Digital to expand support of USD-trading to more than 50 coins, which the firm expects to roll out by year-end.

Moving forward, the brokerage looks to expand its trading footprint into Canada, Europe, and Asia in the next quarter.

“We are looking at them one-by-one,” he said. “After that, we’ll roll out more coins, and then potentially offer clients trading options across other pairs.”

When evaluating new trading venues for possible inclusion in its routing table, Ehrlich’s team examines the reliability of each candidate’s APIs, the quality of its liquidity, and the number of digital assets the platform supports.

If an exchange, for example, makes it difficult to cancel an order, Voyager Digital will not connect to it since that would make it impossible to achieve the best execution, according to Ehrlich.