San Francisco Open Exchanges or SFOX claims to provide potential investors coming in a less cumbersome platform in order to access the most profitable prices quickly in the market.
In the latest edition of the Brave New Coin podcast, SFOX’s Head of Growth Danny Kim was asked how the crypto-dealer is accessing its liquidity for large whale traders or financial institutions.
Kim claimed that the platform’s diverse connection with liquidity providers around the globe has helped them in this process. He stated,
“We do a very thorough due diligence process with each partner in exchange gliding connectivity and looking into how their mechanics work in terms of the deposit and withdrawaly process as well as you know, what security features are, how they’re storing funds and what the total mechanics are.”
Speaking about SFOX’s clientele, Kim suggested that their product has been able to cater to a ‘”spectrum of clients,” varying from professional traders, investors in businesses, and family funds across the industry.
Kim added that SFOX’s growth has been relatively organic as traders moving in were able to conduct arbitrage trading or spread trade from one platform itself. Trying to catch an arbitrage over five or more different exchanges proved to be a tricky puzzle to solve, but SFOX claims to have allowed its traders to capture that profitable arbitrage from one platform itself.
Investors have access to immediate connection and access to an order book which reflects all the real-time prices of assets across major USD exchanges and liquidity provided by those exchanges.
Speaking about a difference between OTC trade volume and exchange volume, Kim claimed that with OTC trading, it is less transparent since OTC is supposed to be opaque in order to avoid moving prices in the market. He added that statistics like 70 percent OTC trade volume for an exchange in comparison to a public exchange did not surprise him since OTC trading is usually hidden, and the figure cannot be identified.
Talking about the organization’s ambition, Kim stated they were looking to be the crypto-equivalent of Goldman Sachs or JP Morgan in the crypto prime dealer. He stated,
“We want to make sure that we can provide the most secure and reliable way for any investors that are involved in crypto to get access to that liquidity. And by doing so I say that you know, we’re very on par hoping to achieve one day to become a Goldman Sachs or JP Morgan for crypto.”