The United Kingdom-based cryptocurrency lending and liquidity service, B2C2, is partnering with SFOX. The SFOX firm is an American cryptocurrency company that serves institutional investors. This information was shared in a February 12 press release from B2C2 and SFOX.
The partnership has a goal of allowing SFOX clients to access B2C2's vast liquidity pools. B2C2 also has nicely priced over-the-counter markets that afford access through a single port of entry. SFOX's clients include asset managers, family offices and individuals with a high net worth.
Danny Kim, who is the head of growth at SFOX, explained that the business is excited about the partnership with B2C2. He reiterated its status as the largest liquidity provider with streaming pricing and the capability for electronic trading. He also noted SFOX's institutional market participation on a global basis. He added that SFOX's clients will benefit from the new over-the-counter liquidity option as well as better discovery for prices.
Max Boonen, who is the founder and CEO of B2C2, added that the partnership enables a bigger selection of cryptocurrency market participants to access the B2C2 platform on a real-time basis and make use of the over-the-counter pricing and two-way markets. He added that the FX markets are almost identical to their over-the-counter digital asset class. Those assets are trading off exchanges at a growing rate, which creates tighter spreads and a deeper level of liquidity.
B2C2 was the first over-the-counter trading venue to become a part of the SFOX platform. The leaders from both of the firms state their belief that cryptocurrency over-the-counter markets have grown in market position compared to traditional exchanges over the past few years. To provide evidence of that claim, they cited a prediction from Aite Group 1 about over-the-counter activities accounting for a majority of cryptocurrency trading levels.
Recent information from the Tabb Group indicates that the share of the American equities traded off of exchanges went up from 34.7 percent in December 2018 to 38.6 percent in April 2019. This trend is similar in Europe, where the trading off of exchanges amounted to 9.6 percent of the market activity.