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.Liquidity aggregators can offer crypto traders deeper liquidity pools and better price execution.
We are trying to take all the hassles out of crypto trading, and simplify it for new investors." Finxflo CEO James Gillingham stated.“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 describes themselves as a hybrid liquid intermediary, aiming to provide competitive rates for centralized and decentralized financial 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.