Due to the rising popularity of online crypto trading, there is a growing demand for professional liquidity solutions providers for decentralized exchanges, brokers, and fintech companies. Liquidity providers enable individuals to buy, sell, and exchange cryptocurrencies and digital assets on trading platforms without relying on centralized market makers. Trading platforms require reliable liquidity providers to facilitate fast, secure, and stable cryptocurrency transactions with minimal slippage and spread.
Below are the top 6 liquidity providers for trading platforms.
1) ChangeNOW
ChangeNOW offers an all-inclusive suite of cross-chain swap solutions to small, medium, and large businesses, helping them build an advanced cryptocurrency exchange or enhance an existing one. Trading platforms can use ChangeNOW’s Crypto Exchange API to develop a new exchange from scratch or modify their current exchange to give their users better financial solutions in the crypto marketplace.
If you utilize the Crypto Exchange API for your trading platform, you can provide your users with access to over 1,500 cryptocurrencies on more than 110 supported blockchain networks and 70+ fiat options. All digital assets are sourced from both decentralized and centralized exchanges for unmatched liquidity. They are also inter-exchangeable assets that enable users to perform cross-chain swaps.
Using the comprehensive API documentation included, you can easily integrate fixed-rate and standard exchange flows into your trading platform, ensuring flexible rate management and a high level of liquidity for trades. The best part is that you will earn a minimum commission of 0.4% on every crypto transaction that takes place on your platform. You will even have the option to customize the commissions based on the trading pair, asset, or swap size.
The Crypto Exchange API works seamlessly with both mobile apps and web platforms. Its impressive performance metrics include a 350-millisecond response time, a 10-minute accident warning time, and a 99.99% availability rate. Few other liquidity providers offer such outstanding metrics.
2) Binance
Binance is a popular liquidity solutions brand for crypto exchanges and brokers that wish to enable Tier-1 market access with narrower spreads. Institutional-grade trading platforms can utilize Binance Institutional or the Binance Broker Program to offer elite crypto services to their clients, whether that be ordinary traders or higher-end individuals and asset managers.
Businesses and institutions can integrate Binance’s white-label cryptocurrency functions and solutions into their existing trading platforms to manage trading, settlement, and liquidity. Meanwhile, companies can still maintain their own branding and client relations without needing to reveal their collaboration with Binance. The suite of Binance APIs helps ensure a seamless integration of Binance’s trading functions and deep liquidity into the platforms of their partners.
Binance has an extensive international reach, supporting over 350 listed cryptocurrencies, altcoins, and digital assets, with a daily trading volume exceeding $20 billion. Therefore, if you prefer a name-brand API, Binance is the right choice for you.
3) B2Broker
B2Broker is a hybrid, multi-asset liquidity provider offering cryptocurrency and forex trading solutions to trading platforms. The company assists exchanges and brokers in quickly building, enhancing, and scaling their trading platforms to attract more users. The plug-and-play liquidity distribution lets you focus on running your business while B2Broker handles the setup and configuration of your liquidity system. There is no need to build it from scratch.
The multi-asset liquidity comprises over 1,500 financial instruments and institutional aggregation from more than 10 cryptocurrency exchanges and 12 Tier-1 banks. B2Broker’s API supports automated trading, ultra-fast trade order processing, and provides low-latency access to market data with real-time updates. The risk management features include stop-loss automation and position size limitations.
4) Cumberland
Cumberland is a Chicago-based cryptocurrency trading firm and a subsidiary of the international trading firm DRW. It is one of the world’s leaders in cryptocurrency trading solutions, having been a presence in the crypto trading market for over a decade. Trading platforms can utilize the firm’s decades of market expertise and risk management solutions to provide institutional over-the-counter liquidity for dozens of different cryptocurrencies and stablecoins.
Many businesses trust Cumberland because it has been in operation for over 30 years, although it entered the crypto space around 2014. Keep in mind that the liquidity provider only works with larger institutions rather than smaller platforms. Big-time companies like Goldman Sachs have utilized Cumberland’s liquidity solutions to execute their first crypto trades, as it provides access to deeper liquidity pools with more favorable market prices.
5) Galaxy Digital
Galaxy Digital Trading is a thriving cryptocurrency liquidity solutions provider, best known for its market-leading efficiency and world-class pricing. It currently oversees more than $2.5 billion in digital assets for almost 1,000 institutional trading platforms. Crypto exchanges and brokers appreciate Galaxy Digital Trading for its competitive pricing opportunities across more than 100 cryptocurrencies.
Galaxy provides 24/7 market access, offering international trading and sales coverage for global electronic and over-the-counter trading. Platforms can access Galaxy via API or GUI. Since Galaxy is a publicly traded liquidity provider on the Toronto Stock Exchange, it upholds strict government standards and compliance to ensure transparency and security for its partners.
6) Empirica
Empirica was founded as a trading software company in 2010, which was right around the time when Bitcoin was invented. Then, as the evolution of cryptocurrency took off, Empirica transitioned into a crypto liquidity provider by utilizing its own unique crypto trading software. Businesses now trust Empirica because it is an experienced company with a flexible business model and no-fee liquidity provision.
Unlike many other liquidity providers, Empirica caters more to small and medium-sized token projects and exchanges. It serves both decentralized exchanges with liquidity pool environments and centralized exchanges with order books. As a result, liquidity is provided across all major decentralized and centralized trading platforms.
The Verdict
All the abovementioned liquidity providers offer outstanding liquidity solutions to trading platforms. However, ChangeNOW is the most recommended liquidity provider due to its advanced Crypto Exchange API technology, which facilitates easy crypto exchange building and integration. Trading platforms can utilize the comprehensive API documentation to easily integrate the API and provide a fast, secure, and reliable crypto exchange to their users.
