Episode Details
Back to EpisodesInstitutional Infrastructure - How crypto prime dealers access liquidity for Bitcoin whales
Description
Danny Kim is Head of Growth at SFOX, a crypto trading platform and prime dealer for whale traders and institutional investors. SFOX is connected to 20+ exchanges and OTC desks to provide a single point of access to the crypto markets. SFOX was one of only two crypto companies to make Y Combinator's list of the Top 100 most valuable companies to come out of its accelerator program.
Key takeaway:
A prime dealer provides a single point of liquidity to all the major crypto exchanges, a vital access point for large whale traders and institutional investors. The prime dealer model is an evolution in the Bitcoin and crypto markets as more sophisticated traders demand a more comprehensive liquidity solution via a single trading platform. The exact amount of OTC volume is unknown but may be up to 70% of the market.
Why you should listen:
Danny explains the animal-inspired suite of SFOX algorithms - Polar Bear, Tortoise, Hare, and the Gorilla. He says the institutions are coming, however, it's a slow and steady process due to the complex requirements of the larger pension funds and custodial clients. In the Crypto Conversation hot take round, Danny says he is a fan of Andrew Yang, and his favorite science fiction film is Interstellar.
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