Trading-software startup Bitsian has begun a curating phase of its cryptocurency aggregated trading platform beta test, according to company officials.
The platform provides a consolidated limit order book of up to the ten crypto markets to which Bitsian has connected as well as cross-market best pricing,
“Customers cans see what their price across any exchange to which we connect including the trading fees,” Raakhee Miller, co-founder and CEO of Bitsian, told IntelAlley. “We also have a smart order router, which clients can select for best execution.”
“Clients upload their connectivity and API keys for each market into the system, and then they connect to the various markets that they trade on,” added Steve Brucato, co-founder and CTO of Bitsian.
The vendor pulls market data directly from each market then consolidates, normalizes, and standardizes the data using an internally developed symbology.
“Users can see the native symbol within the system if it is different from the Bitsian symbol,” noted Brucato.
Using the standardized data, the trading platform supports synthetic trades in 2,800 native pairs and more than 180,000 synthetic pairs.
The startup is connecting to 10 additional venues, which include derivatives markets and exchanges.
Bitsian plans to use its trading platform as the trading infrastructure for an agency broker-dealer, which it intends to register or establish a partnership by the end of the year.
Although headquartered in New York City, Bitsian plans a global rollout given the nature of the crypto market, according to Miller.
“We want to set up an EU-registered entity,” added Brucato. “At the top of our list is Estonia, which we are in the process of setting up.”
Under the agency brokerage model, Bitsian client would deposit fiat and crypto funds with the firm and trade via Bitsian’s accounts on markets, which may be a subset of those to which they currently connect.
Bitsian then would store a portion of client funds in reserve while depositing a part into its omnibus accounts at each connected market.
The vendor would consider providing segregated accounts if there was enough client demand and the individual markets supported the accounts, but the desire for trading anonymously likely would outweigh client interest in segregated accounts, according to Miller.
Users who would prefer segregated accounts would be a better fit for the SaaS model, which Bitsian plans to run in tandem with the brokerage business, she said. “It allows them to manage their capital while accessing the platform’s features.”