Crypto Liquidity Aggregation | European Blockchain Convention

foreign [Music] officer at beach broker Pizza broker is including and Technology provider we're probably one of the largest wholesale LPS out there today and essentially I'm here to discuss a fascinating topic which is aggregation of liquidity in this industry I've been in this industry for or in financial markets for over 20 years so I've gone through some bumpy roads over over time what I could say most importantly I would like to say thank you everyone for being here now I think the following topic brings a lot of value to some of your businesses and it is a discussion that ultimately has a long-term benefit which is educating yourselves on how liquidity gets distributed how the key component of a business being liquidity it actually gets out to you okay so let's get started very quickly one piece of information that I came across which I thought was quite valuable at this moment is the fact that in the crypto space nowadays Perpetual Futures have captured a lot of popularity over the last couple of years or so we have seen that over time if we just analyze some data late into 2022 68 of the trading volume was done on crypto derivatives and interesting enough 62 percent of that volume was done on binance uh it just goes to prove that some venues have a very large appeal to a specific audience I've been in this industry as I said for a very very long time and our company has a view we run a model that is more or less Prime brokerage but in the crypto world what that means in essence and I I'm just giving a diagram of what we do is we take liquidity from the various Market participants in the space we collaterize all those accounts and then clients who trade with us get this liquidity passed on to now most of you have heard Prime of prime liquidity it's a subject for debate up to a certain extent of course but what we do is we facilitate access to markets by aggregating multiple LPS in essence you get that benefit of spread compression over a deep order book where large order clips essentially have the slightest or perhaps a minimum Market impact remember when you trade large volumes you're consuming liquidity liquidity doesn't mean that it's firm at all times and especially in the crypto world where liquidity is thinner than traditional Finance it plays a key role who you're interacting with counterparties like us as a liquidity vendor essentially we have a duty and a responsibility on choosing our partners we have a responsibility on the technology we use to distribute that liquidity and I'm going to come to that in a second don't forget by having a counterparty that distribute liquidity across multiple venues you have an immediate risk mitigation if we just go back to the unfortunate situation of 2022 I think we all have these in the back of our heads for days to come if you just phase one entity such as FTX you would have been in a very unfortunate situation by dealing with vendors as us we have a diversification across the entire space and we have that due diligence not just legally speaking because anyone does due diligence on a counterparty purely on some basic criterias that legal teams have in place but you need to know that businesses like us I take that very seriously I analyze that business I understand what they do to the best of my abilities before I engage into any relationship the maturity and the experience of that counterparty plays a tremendous role into the business that you're engaging so to have an aggregation model similar to Prime of Prime in traditional Finance the crypto derivatives Market has become more and more mature and obviously some faces that I recognize here today they actually create markets for us and ultimately we distribute that liquidity to all of you as end users over the course of the years we developed um probably one of the most comprehensive aggregation models that exist within the business we use some of the best technology to date and I've had relationships with some of these guys for over 10 years so when you have multiple counterparties that's not enough that's one key of the relationship you need to be able to Aggregate and ultimately distribute that across all different connectivity points whether you are a white label user whether you're just an algo whether you know there's different types of businesses out there regardless of what your needs are businesses like ours are in a privileged position to support that type of trading activity through our own due diligence over the years here's a fantastic slide I call it because it gives you the whole overview of the crypto derivatives World which in my opinion has become more and more popular over time as always on my side and I think yourselves as potential business owners or anyone who's interested in starting their own business when us says that counterparty when us says that equality provider you always want to look at what sort of business model you're gonna interact with I'll give you an example our company Beat broker has from day one initiated their operations on an agency model business which means we don't internalize flow we pass that on to the makers the makers being those market makers exchanges Etc who make markets professionally that's not our role beta broker prize itself in the fact that we facilitate those markets through our infrastructure for that there's obviously a fee but nevertheless you don't have a conflict of interest I'm not a market maker for you which means I'm already against your best interest on the contrary I listen to your liquidity needs I tailor liquidity to what you truly need in order to serve your business so when you look at companies like us you got to always think about do they actually have a liquidity team behind the scenes that can go and negotiate deals with the likes of ABC without mentioning names obviously do they have the capability of building a business that is reliable that is sustainable which means it has to be profitable and most importantly is it a business that is Diversified because if you deal with a counterparty that their only light of Revenue its liquidity well I'm sorry to tell you but they're probably going to make the most out of you as a customer our company over the years we've Diversified into digital assets among many other products we have an offering on digital assets processing we provide white labels of digital assets exchanges so among many other businesses which means we don't depend on just one stream of Revenue therefore I can be more aggressive I can be more competitive and insufficient to run a diversified yet profitable operation so when you look at a partner at a counterparty it goes far beyond just what you may think is the norm and I think what happened last year is obviously a life-changing event but companies like us we believe in regulation it's a good thing regulation despite that it can be controversial in the crypto space provided that we are lightly regulated I think it brings transparency transparency ultimately brings credibility and that's what everyone needs nowadays to believe in the industry there are participants I know for a fact businesses like ours who are eager capable to serve every any of your needs unfortunately seems like I'm running out of time wow that was quick okay um I just want to take a couple minutes to elaborate on something quite important our company for those who trade on digital assets has created a solution called Marksman essentially what it does is Aggregates liquidity from various venues and we call that our liquidity Hub and we distribute that to you in a very simplistic way and I wish I had more time to elaborate on this this is your gateway to digital assets liquidity some of the deepest liquidity pools are found here because we do not restrict customers from choosing who they want to face as a counterparty that's the level of transparency that I'm trying to elaborate on that businesses must be looking at we support well multiple the traditional players in the industry among many others we've been in business for several years we have tremendous level of expertise I wish I had more time today to elaborate on it but it seems like unfortunately we ran out if anybody wishes to discuss our Solutions we are right next door I'll be delighted to answer any questions you may have we're here in Barcelona for the next couple of days fantastic city thank you for having me and have a great day