Fintech solutions provider Broctagon Fintech Group this week launched WorldBook, which it describes as a global crypto movement focused on solving key liquidity issues plaguing the industry. WorldBook is an STP (straight-through processing) network with an aggregated liquidity pool. It aims to introduce a universal standard of liquidity for digital assets, uniting both processes and technology within the crypto industry under a single framework.
WorldBook combines the order books of connected exchanges to create a unified one that enables multilateral liquidity flow. Instead of access to only fractions of the total industry, exchanges now gain access to 85 per cent of the market. This is made possible by the NEXUS 2.0 aggregator, the driving engine that powers the WorldBook with smart order routing that allows for global price discovery and best bid and offer.
“Despite the gaining acceptance of crypto, it remains a ‘wild west’ with no dominant technology or standard in which it operates,” Broctagon Group co-founder and CEO Don Guo said. “With the WorldBook’s price aggregation, we found that bitcoin had an average negative spread of $10, even amongst the major exchanges.
“This means that with over $15.5 trillion in trading volume over the past year, traders could have saved $5.7 billion in spreads and this is for bitcoin alone, which is already the most efficient and liquid digital asset. The price disparity could only be worse for the thousands of altcoins across many smaller exchanges.”
Guo said his team engineered the WorldBook infrastructure by borrowing from the fundamentals of FX interbank liquidity. He added Broctagon believes in the Prime of Prime (PoP) model, where retail brokers can trade through a top-level broker account.
“(It) has the potential to disrupt the industry and increase crypto trading volumes by more than 400 per cent in the near future,” Guo concluded.
As Singapore looks to be a poster child for the crypto industry with its welcoming policies, Broctagon said it seeks to support this national agenda. Exchanges are welcome to connect to the WorldBook for free. The advantages for exchanges include an evident increase in volumes and a decrease in bid-ask spread amongst others.
“Liquidity challenges exist for newer and established exchanges alike. The former requires extensive capital for marketing to capture enough users for a liquid order book while the latter often pay hefty fees for external market maker services to drive profitability,” Guo said. “The WorldBook is a solution for both. With universal prices and unprecedented depth, exchanges can focus on other aspects of the business to bring further value to their clients.”