CrossTower is a US-based cryptocurrency trading platform that was founded with the goal of digital assets adoption. The exchange was founded in May 2020, targeting retail and institutional traders. The trading facility offers spot trading of digital assets along with margin, and interest products for professional investors. The platform also included structured products in the number of its offerings.
The multi-asset platform employs the best protective features, services, and technologies. The exchange also offers market-leading liquidity thanks to partnerships with prominent market makers. The trading model offered by the exchange features a high level of transparency and cheapness, minimizing expenditures and maximizing returns of users. The entity fully complies with the US regulatory framework. The company asserts its dedication to regulatory compliance in every jurisdiction where the platform operates.
In June 2020, the platform announced the completion of a 6 million USD seed round that was led by the famous top technology investor and CEO of several companies Gerard Lopez who invested in Skype.
In September 2020, the company received a class M license for a Bermuda-based platform thus expanding its markets. The company tries its best to solve the problems of the cryptocurrency industry and meet the requirements of demanding institutional traders. For this reason, it hired executives from such heavyweights of the industry as Galaxy, Kraken, and Legg Mason that are strategically important for the platform.
The background in highly regulated industries helped the rising firm to make considerable advancement thus becoming one of the most rapidly growing cryptocurrency exchanges. In November 2020, it reported that its trading volume reached 150 million USD. The incredible growth is probably explained by the fact that the platform targets institutional investors though there may be many other reasons.
The range of security measures includes multi-layer protection and risk management tools enabling the liquidity providers to feel safe about their support as they deliver deep liquidity to CrossTower users. All this contributes to better execution quality.
The platform employs a high-throughput trading engine that helps to create a perfect trading experience along with advanced trading tools. A robust API delivers excellent connectivity for customers using FIX, WebSocket, and RESTful APIs implementing incredibly fast trading and small latency on a trading ground. The use of co-location services helps the exchange provide lightning-fast trading speed for its users.
The trading terminal features multi-screen support making the trading process more convenient. A customizable user interface helps to personalize the layout to your taste.
The platform offers high-performing trading software with extensive functionality. There is a possibility to employ different types of orders in the facility where basic Market, Limit, and Stop Market orders are supported. Along with them, a more sophisticated functionality is available for customers with advanced order types such as Stop Limit, for instance. The innovative options include Good-Till-Canceled, Fill-Or-Kill, Immediate-Or-Cancel, Day, Good-Til-Date/Time, and Post-Only orders.
The platform also promises tightness of bid-ask spreads for its users. Everything is properly arranged for trade execution of supreme quality including deep order books and excellent risk management.
The advanced order types are available in the functionality of the mobile apps developed by the in-house team. Android and iOS apps feature a straightforward, clear design that includes everything experienced investors and traders may need for efficient work. The team actively works with customers, arranging competitions to attract the audience, and answering comments of users on social media.
Much attention is paid to cybersecurity at CrossTower. The choice of hosting in the Equinix data center speaks for itself as this is SOC 2 Type II, ISO 27001, and PCI compliant facility. The audition of CrossTower security measures is implemented by the best security specialists in the industry. The security rigorous safeguards include the custody of assets in cold storage air-gapped systems offering multisig protection.
The company sticks to AML/KYC regulations. All measures are taken to prevent fraud on the trading ground. Half of the team are involved in compliance-oriented activities. The members of the team have much expertise in equities and options markets and it was employed for risk management techniques protecting the customers. Maximum efforts were made to reduce the risk for them.
The main features offered by the exchange include low-cost trading as the platform adopted the innovative pricing model. The traders are paid a rebate when trading against resting liquidity.
The goal of the scheme is to assist customers to attain the best execution by minimizing costs. The trade fee depends upon the 30-day trading volume. The rates differ for institutional and individual traders. More information about trading fees is available on a dedicated page on the official website. Also, at the time of writing, the company offers 0.01% cashback on all eligible trades.
The key figures of the team include Kapil Rathi, a co-founder, and CEO at CrossTower who describes himself as a Wall Street veteran with a passion for cryptocurrencies, blockchain, and derivatives. Being a turnaround expert, he has expertise in building multi-million dollar ventures from scratch. Additionally, he works as an advisor at Alkemi, the company that offers decentralized finance services for centralized institutions, and an advisor at New-York based Forest Park, a creator of LoanOS, which is an innovative blockchain-based syndicated loan closing platform. Previously, he worked as a COO of AlphaPoint, a financial technology company, where he met Kristin Boggiano, a Chief Strategy and Legal Officer.
Kristin Boggiano is the president and co-founder of the CrossTower exchange and a founder of DARLA, Digital Asset Regulatory & Legal Alliance that helps to shape the policy and regulatory landscape in the blockchain and digital asset industry. She also enters the executive committee of True Positive Technologies, L.P. that develops customized, machine-learning investment strategies for institutional investors. As for her previous employment, she worked in SEC (US Securities and Exchange Commission), Schulte Roth & Zabel LLP, and Guggenheim Partners as managing director and senior strategic advisor.