Digital asset prime broker SFOX allows traders to trade global crypto markets using a single account.

SFOX, a crypto prime broker, has launched a trading product that will allow hedge funds to execute highly sophisticated trading strategies at scale. The new crypto product offers features that were previously only available to the market’s largest firms. (BusinessWire)

Growing institutional interest in crypto

Data from KPMG revealed that in the first six months of this year, the total global investment in blockchain and crypto reached $8.7 billion. This figure is more than double the $4.3 billion worth of investments made in 2020. Moreover, the investment in 2021 already exceeds the all-time annual record previously set in 2018.

The data reflects growing institutional participation, according to KPMG.

In confirmation, within SFOX, hedge funds are the firm’s fastest-growing trading segment, with an 18x increase in trading volume year over year.

“This first of its kind crypto trading platform is the right product at the right time as institutions of all kinds are rapidly transitioning to investing in digital currencies,” said Chamath Palihapitiya, Founder and CEO of Social Capital, an investor in SFOX. “The technical superiority and unmatched cryptocurrency liquidity at SFOX will bring the hedge fund industry the trading, reporting and compliance services institutions need to embrace cryptocurrency as a new asset class.”

Amazon-like marketplace for crypto

According to SFOX, it is creating a crypto platform similar to Amazon which became the marketplace for buying from many stores and sellers at a single location.

“The aggregated liquidity of crypto on SFOX is so vast that a single $50 million trade of bitcoin would execute in milliseconds without moving the market – 10x more than any exchange,” SFOX said in its announcement.

Key features of the new trading platform:

· Best price execution through deep global liquidity

· Advanced order types and execution algorithms (including plug-and-play)

· Treasury management

· Detailed trade analytics, including a proprietary Trade Cost Analysis (TCA) program

· Flexible settlement, including Instant Settlement for pre-funded transactions and Post Trade Settlement (PTS), which allow hedge funds to avoid pre-funding using a line of credit granted by SFOX.

· Risk management and best-in-class security

· Multi-user accounts with customizable permissions

· Workflow automation

· Integrated reporting and tax solution

“We’ve built a platform that gives any hedge fund access to all the same tools and resources previously only accessible and available to the most well-resourced trading firms in the world and at no to low cost,” said Akbar Thobhani, CEO and Co-Founder of SFOX.

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