The rapid growth of the crypto market has introduced new complexities to trading infrastructure, particularly when it comes to providing reliable liquidity and risk management solutions. Trading technology is rapidly evolving to meet the needs of both retail and institutional players. But how can the industry adapt to the unique challenges posed by crypto’s fragmented market structure? And what role will prime brokerage models and advanced liquidity solutions play in shaping the future of digital asset trading?
In the latest episode of The Flow podcast, Konstantin Shulga, CEO of Finery Markets, sits down with Tom Higgins, CEO of Gold-i, to explore these critical topics. With decades of experience in building trading infrastructure, Tom shares his insights on how FX market practices are being adopted and reshaped in the crypto space, as well as how technological advancements are helping to bridge the gap between traditional finance and digital assets.
During this episode, Tom and Konstantin delve into several key areas:
- Fragmentation in Crypto Markets: Tom outlines how the crypto market, with its hundreds of execution venues and thousands of liquidity providers, remains one of the most fragmented asset classes. He explains that while consolidation is likely, the complexity of the market poses unique challenges for trading technology providers.
- Prime Brokerage Models and Liquidity: Tom and Konstantin explore how the rise of prime brokerage models in crypto is providing smaller players access to liquidity that was once limited to large institutions. This evolution is helping to bring greater stability and reliability to the market, particularly for brokers who need institutional-grade solutions to support their clients.
- No-Last-Look Liquidity: One of the biggest challenges in crypto trading is managing latency and execution risk. Tom discusses the pros and cons of no-last-look liquidity, where execution is guaranteed but market makers face increased risk due to the high frequency of price updates. He highlights the difficulties many providers face in keeping order books up to date, especially in fast-moving markets like crypto.
- The Future of On-Chain and Off-Chain Solutions: Tom and Konstantin agree that while on-chain solutions offer potential for greater transparency and efficiency in settlement and clearing, off-chain systems still dominate when it comes to execution speed. Tom emphasizes that using the right technology for the right task is essential for optimizing trading operations.
Listeners will also hear Tom reflect on Gold-i’s journey over the past 16 years and the key breakthroughs in trading technology that have shaped the industry. From building robust risk management tools to creating custom order books tailored to institutional needs, Gold-i has been at the forefront of innovation in both FX and crypto markets.
Tune in to this episode for an expert discussion on the evolving dynamics of trading technology and market structure in the digital asset space. Don’t forget to like, share, and subscribe to The Flow for more insights into the future of institutional crypto trading.
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About The Flow
The Flow is Finery Markets' branded podcast series, dedicated to exploring the exciting world of institutional crypto trading. Each episode explores the currents shaping the digital asset markets, offering listeners a unique blend of expert insights, industry trends, and forward-thinking strategies. Hosted by Finery Markets’ thought leaders and featuring a roster of distinguished guests from across the financial and technological landscapes, The Flow navigates through the complexities of electronic trading infrastructure, regulatory landscapes, and the evolving dynamics of liquidity and market making.
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