Cryptocurrency exchange platform and card issuer Crypto.com will be providing liquidity in a new partnership with Singapore-based hybrid liquidity aggregator Finxflo.
In an announcement on Tuesday, Crypto.com said it would be joining Finxflo as the firm’s first liquidity provider, reportedly allowing the exchange to increase its transaction volume and mitigate market volatility. In general, liquidity aggregators may allow crypto traders to take advantage of deeper liquidity pools and more advantageous price execution.
“We want to eliminate the hurdles associated with crypto trading, and streamline the experience for new retail investors,” said Finxflo CEO James Gillingham. “As we continue to deepen our liquidity, we can provide the best possible price levels across liquidity pools for the institutional investors to price-sensitive retail traders.”
A crypto platform with adequate or high liquidity and competitive market pricing may attract additional traders returning for more transactions, which in turn provides liquidity to other traders acting as counterparties. Finxflo said it is a hybrid liquidity aggregator, aimed at offering competitive pricing for centralized and decentralized finance projects. This model reportedly increases the speed of transactions and reduces the likelihood of market manipulation.
Onchain Custodian will reportedly be providing crypto custody services for Finxflo in order for the platform to comply with Anti-Money Laundering regulations under the Financial Action Task Force’s Travel Rule. Among other directives, the rule requires crypto exchanges and custodial wallet providers to disclose customer information when facilitating a trade of $1,000 or more.