The capitalization of the crypto market has already totaled $143 billion. The market is expanding constantly, and despite all the problems, there do not seem to be any limits to this expansion so far. At present, cryptocurrency exchanges have to function as an exchange proper, and also as a broker and an exchanger.
As a result, despite all the growth dynamics, the cryptocurrency market is not developing as fast as one might desire. For comparison, consider the good old Forex which is regulated by the laws in various countries. Currently, there are 8 thousand Forex brokers in the world. The operations of the ten major brokers total $15 billion per day. Thus, the daily turnover of just one broker out of the top ten exceeds the total turnover of the most popular crypto exchanges.
The market of broker services can also be evaluated. At present, there are over 12 thousand different broker companies. Among those, a vast majority offer their clients the broadest range of financial instruments, including currency ones.
Those instruments can be used at any time; they are regulated, have been in circulation since long ago so that the market has had time to adapt, and accordingly, there exists quite a wide ecosystem of applications necessary for the work in that area. But how can we ensure that cryptocurrencies can be used as a financial instrument that is accessible to all?
Below, some existing problems are listed as well as approaches to solving them as proposed by B2BX.
Traders and investors are unable to work through familiar mechanisms to deposit and withdraw money. Today already it is possible to work with cryptocurrency, but the exchanges mentioned above are not as a rule subject to any regulation.
The second problem is the ever present volume for selling or buying of some asset at any time. Solution from B2BX. The problem will be solved through the integration of B2BX with major trading platforms and liquidity aggregators, and uniting brokers, exchanges, and financial institutes on a single platform. In turn, this paves way to forming a deep order book for cryptocurrencies.
If a broker connects to the aggregator B2BX, they will be able to receive the necessary volume and hedge a limited volume. This is possible because the aggregator draws liquidity from top crypto exchanges. The more institutional clients there are, the greater volume of liquidity can be obtained within the aggregator.
The third major problem concerns technical complications related to the technical integration of cryptocurrencies with conventional financial instruments. Despite the availability of a large number of technical specialists that have sufficient experience for the implementation of the necessary mechanisms, many companies simply lack the time to adapt the current soft (or write new applications) for the cryptocurrency sector. Admittedly, some tools exist already, and there are not very few of them. But they are not unified and many have security problems, while some programs simply cannot handle the necessary workload. Besides, clients who want to work on cryptocurrency platforms need to get registered. Often, the procedure of user verification is quite complex. If a major client wishes to open accounts not on one, but on 3–5 exchanges, they have to spend a few months on each.
Solution from B2BX. The only remedy here is unification of all standards and protocols into a single one. B2BX will be aggregating and processing protocols from different exchanges and providers while giving their broker a single standard FIX API protocol.
As a basis, we use the aggregator from the company SoftFX integrated with 5 largest crypto exchanges. The aggregator has a FIX API protocol for further distribution of liquidity to other systems and aggregators. And it is not just a speculation, it is a reality.
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