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From boutique banks specialising in services for fintechs, to traditional institutions meeting customer demand for digital assets.
Our clients include equities brokers keen to add digital assets, alongside crypto natives eager to make their set-up more robust.
Funds of every size are now offering an opportunity to diversify portfolios or deploy focussed strategies, from ETPs to underlying assets.
And determine the right price for your customers
Via our unique trading and settlement API
With tailored project management and testing
Hyphe Markets GmbH operates a Securities Trading Institute Licence (WpIG) supervised by the German regulator, Bundesanstalt für Finanzdienstleisungsaufsicht (BaFin).
Every day, Hyphe is helping European institutions welcome more and more people into the market - that’s what excites us.
Get in touch to schedule a free feasibility assessment with one of our experts.
In the time spent connecting digital assets to the world of traditional finance, we’ve gathered plenty of insight for institutions. If your question remains unanswered, we’re always happy to help.
Contact usWhat does a typical digital currency trader look like?
Digital currency markets are currently attracting various types of traders, with a strong bias towards retail. Crypto evangelists often maintain a long-term holding strategy, therefore trade at low frequency. High-net-worth individuals (HNWI) trade large sums, but also at low frequency. This nucleus is surrounded by a layer of traditional over-the-counter (OTC) day traders, experienced in trading exchange-traded products / exchange-traded funds (ETP/ETF), and foreign-exchange (FX) day traders. Both groups are aged mid- to late-30/40s, and trade at a high frequency, taking advantage of volatility in digital currency markets and the opportunity to trade 24/7; including market movement over weekends. They’re joined by an increasingly large, and increasingly younger cohort of casual retail investors, typically Millennials, attracted by the online buzz surrounding digital currency, and enabled by commission-free trading apps. As participation scales, this group is predicted to grow and eventually include a majority of Gen Z. If you’re from a traditional financial institution, these people fit your existing customer profile.
What’s the customer experience expectation?
Three-fold. Firstly: traders expect very tight bid/ask spreads, regardless of whether they’re using a commission-based, or commission-free trading platform. Therefore you need an institutional liquidity provider that can sustain your low-cost trading model in order to reduce customer attrition. Secondly: digital currency traders expect seamless, 24/7 trading. It goes without saying that the online frontend experience should be well-designed and easy to use, but it must not suffer routine outages or barriers to trading. Using a reliable digital asset liquidity provider is essential. Thirdly: most traders want access to a range of assets, delivered by a trading platform that feels up-to-date and current. We can help you keep on top of trends by adding popular coins to the list.
What sort of institutional brands are offering trading already?
Bitcoin is certainly the most well known and currently most valuable digital asset - synonymous with cryptocurrency for many consumers. But for those actively trading there’s often interest in a larger group of popular digital currencies, for example, Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. It takes little additional effort to include extra assets in your lineup, the customer reaction is likely to be positive, and our clients tend to experience an uplift in revenue with each new product.
What’s the regulation standard needed; how hard is it to get?
Regulation varies by location - and we’re always happy to help navigate. In 2020 the EU issued the 5th Anti-Money Laundering Directive (5th AMLD) which has been implemented at a local level in several member states, creating various regulatory standards. In the Netherlands the requirement is registration with DNB as a ‘Cryptocurrency Service Provider’.