A new cryptocurrency exchange is to launch specifically for institutional investors. The former executives from Jefferies Financial Group are the founders of this exchange. The exchange will be named Crossover Markets Group Inc. The launch will take place in late summer to early fall. The exchange’s website describes itself as a “digital asset exchange designed to meet the liquidity needs of institutional clients.”
Jefferies Financial Group has its headquarters in the U.S. and is the largest independent full-service investment banking firm. In addition, it is the seventh-largest investment bank worldwide.
The leader of the new cryptocurrency exchange will be co-founder and CEO Brandon Mulvihill. Brandon once ran the Jefferies foreign exchange prime unit. In addition co-founder CCO Anthony Mazzarese who happens to be Mulvihill’s business partner. Together they will run the exchange along with technologist Vlad Rysin. He is the former chief technology officer at the trading company of Euronext FX.
The co-founders recognized the significant barriers to the entrance for traditional customers. It includes concerns over digital asset custody and the market’s absence of institutional-only venues.
The main focus of the Crossover Market Group is to improve the technology in the crypto market. The new cryptocurrency exchange aims to speed up crypto trading in addition to reducing delays that would typically take place by FX or equities by institutional investors. Mazaresse says, “There seems to be a notion that latency doesn’t matter when trading crypto. We disagree.” He continued ‘We polled our network of institutional relationships globally. One of the biggest and most common requirements was reliable 24/7 technology with the same service levels and customization features they are accustomed to in other markets such as FX or equities. This is exactly what Crossover Markets will provide.”
Mulvihill stated that while most traditional institutional investors have yet to enter the crypto area, this is fast-changing. He emphasized the need for exchanges to work on advancing technology by market maturity.
A survey report that was released by Bitstamp showed a higher sum of the 28,615 institutional and retail investors believe that crypto investments will overtake traditional investment within a decade.
Although the two executives of the Jefferies have left the company to start the new exchange in March, Jefferies is still surging. They continue to expand with the leadership of Alexander Yavorksy, who is the managing director of the firm. Yavorsky mentioned that the company is exploring many things crypto-related, such as trading, prime brokerage, and wealth management.