Finery Markets, a leading non-custodial cryptocurrency Electronic Communication Network (ECN) and SaaS trading platform provider, has announced a strategic partnership with Stillman Digital, a global digital asset liquidity provider. This collaboration aims to expand liquidity options for institutional clients using the Finery Markets platform, which serves payment companies, brokers, over-the-counter (OTC) desks, and digital asset firms worldwide.
Expanding Liquidity for Institutional Traders
Stillman Digital, operational since 2021 with a presence in the United States, Canada, and Bermuda, offers a comprehensive suite of liquidity solutions. These include electronic trade execution, market making, OTC block trading, and inbound/outbound services. Through this partnership, Stillman will provide real-time quotes to liquidity recipients on the Finery Markets ECN, which processed over $2 billion in trading volume during the second quarter of this year.
Since its establishment in 2019, Finery Markets has facilitated OTC liquidity for more than 100 enterprises engaged in digital asset trading globally. This partnership represents a significant step toward improving liquidity access and trading efficiency for institutional participants in the growing digital asset ecosystem.
Overview of Finery Markets' Ecosystem
Finery Markets operates a non-custodial crypto ECN, delivering a software-as-a-service (SaaS) trading platform tailored for institutional clients. The company supports over 100 businesses worldwide, including payment providers, brokers, OTC desks, hedge funds, and custodians, with a operational footprint across North America, Europe, Asia, Latin America, and Africa.
Key offerings from Finery Markets include:
- FM Marketplace: A platform that connects liquidity providers with recipients to enable efficient trading.
- FM Liquidity Matching: Aggregates liquidity from multiple providers to ensure best execution prices.
- FM White Label: Allows institutions to rebrand and customize Finery’s trading solutions under their own brand.
These solutions empower clients to access deep liquidity pools, optimize trade execution, and streamline risk management and settlement processes. Additionally, Finery Markets is recognized for its stringent security protocols, being the first crypto ECN to achieve SOC 2 Type 1 certification.
Introduction of RFQ Execution Model
Last week, Finery Markets enhanced its platform by introducing a Request for Quote (RFQ) execution method. This addition complements the existing order book execution, establishing Finery as the first hybrid crypto ECN in the industry.
The RFQ model enables buyers to request quotes for specific asset quantities, receiving competitive responses from multiple liquidity providers. This method is particularly advantageous for large-volume trades, as it helps minimize market impact, and for assets that lack continuous market coverage.
In preparation for this hybrid ECN launch, Finery Markets migrated its trading servers to Amazon Web Services (AWS) in Japan. This strategic move positions infrastructure closer to key cryptocurrency price discovery hubs, improving the speed and accuracy of market data processing. Clients benefit from reduced latency and enhanced trading performance without compromising security.
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Frequently Asked Questions
What is a non-custodial ECN?
A non-custodial Electronic Communication Network allows participants to trade directly without transferring assets to a third-party custodian. This enhances security and reduces counterparty risk, which is especially important in cryptocurrency markets.
How does RFQ execution work?
Traders submit a request for a quote specifying the asset and quantity. Liquidity providers then respond with competitive bids, allowing the trader to choose the best offer. This method is ideal for large or illiquid orders.
Why is liquidity important in crypto trading?
High liquidity ensures tighter spreads, faster execution, and reduced price slippage. It is crucial for institutional traders who need to execute large orders efficiently.
What are the benefits of a hybrid ECN model?
A hybrid ECN combines order book and RFQ execution, offering flexibility for different trade types. Traders can access continuous markets for liquid assets and request quotes for larger or custom orders.
Who can use Finery Markets’ platform?
The platform is designed for institutional clients such as brokers, OTC desks, hedge funds, and payment providers. It is not typically available to retail traders.
How does geographic server location affect trading?
Proximity to trading hubs reduces latency, enabling faster data processing and execution. This is critical for high-frequency and arbitrage strategies in global crypto markets.