B2C2, the UK-headquartered crypto lending and liquidity provider, is joining hands with SFOX, a prominent cryptocurrency centered firm serving hedge funds and other institutional investors, to offer the latter’s clients (high networth individuals, asset managers and family offices) access to deep liquidity pools and competitively priced OTC (over-the-counter) markets via a central access point.
Commenting on the partnership, Danny Kim, head of growth at SFOX, stated:
“We are delighted to partner with B2C2, the largest OTC liquidity provider whose streaming pricing and electronic trading capabilities are relied on by institutional market participants globally. SFOX clients will now benefit from a new source of OTC liquidity coupled with greater price discovery.”
Max Boonen, founder and CEO of B2C2, explained the benefits to clients:
“Our partnership enables a broader set of market participants to access B2C2’s real-time OTC pricing and deep two-way markets. Much like the FX markets which are almost entirely OTC, the digital asset class is increasingly trading off-exchange, resulting in tighter spreads and deeper liquidity.”
B2C2 is the initial OTC market to be included in the SFOX platform. Chief of both platforms trust that cryptocurrency OTC markets have grabbed market share from conventional exchanges in the past three years. A document published by Aite Group 1 forecast that OTC activity would represent the majority of crypto trading volume in the near future.
Data from Tabb Group indicates that the share of the US equities traded outside exchange rose to 38.6% in April 2019, from 34.7% in December 2018. This scenario is also reflected in Europe, where trading outside the exchange represented 9.6% of total trading activity in exchanges during the same time frame.
