In recent weeks, I have highlighted an increasingly frenzied “arms race” amongst top crypto firms — and soon-to-be, legacy finance players — to acquire as many assets as possible in the highly fragmented crypto service arena; with the goal of establishing, as quickly as possible, a leadership position in the immensely profitable Prime Brokerage space.
In crypto, Prime Brokerage doesn’t yet exist — but given exploding crypto prices; and consequently, hundreds, if not thousands of crypto hedge funds launching January 1st ; there is NO DOUBT this frenzy will be nearly unprecedented in financial history.
This is why Digital Lending Capital Corp’s UNIQUE, highly advanced crypto Prime Brokerage software (and service) platform, launching NOW, will be one of the most sought after products in the entire crypto space; and DLCC, one of the most sought after partners.
To wit, consider this article, discussing an interview with Coinbase’s Head of Institutional Coverage, Brett Tejpaul.
“I joined in April this year. At that time, our institutional assets under custody were $6 billion, but today we stand at over $20 billion. So, more than a three times increase.”
Coinbase, the world’s largest crypto exchange, is so frenzied in its attempt to build an in-house Prime Brokerage platform; and thus, build market share before other competitors can build positions; they paid (at least) $75 million for Tagomi, an execution platform that very likely, had no crypto Prime Brokerage software when purchased.
So, the race is on to build crypto Prime Brokerage software solutions— a VERY complex process that took DLCC 18 months to do, in building the Version 1.0 it is launching NOW.
“In May, we acquired an execution platform called Tagomi, (which) radically transformed our ability to cater to institutional clients that want to use smart order routing and algorithmic execution. (To that end), our trading volumes are 20 times what they were at the beginning of the year.”
The reason for such growth is the long-awaited arrival of the “wall of institutional money” to crypto — of which, frankly, there is no batter way to describe than explosion; which likely will go parabolic in 2021, due to the aforementioned entrance of new hedge funds, and unprecedentedly positive Bitcoin fundamentals.
“Week after week after week, we’ve had an explosion of incoming capital.”
For current, or soon-to-launch crypto hedge funds; as well as other institutional crypto investing entities; please contact us to set up a Version 1.0 demo.
And for exchanges, banks, or service companies seeking to build significant crypto Prime Brokerage offerings, please contact us to discuss potential partnership opportunities!
Digital Lending Capital Corp is Crypto’s first full-service Prime Brokerage software solution — fully online, and actively operating in today’s exploding digital market. For more information, please go to https://www.dlcc.co/; email me, DLCC’s Marketing Director, at andy@dlcc.co; James Runnells, Founder and CEO, at james@dlcc.co; or Mike Hamill, Global Head of Hedge Fund Sales, at mike@dlcc.co; or follow us on Twitter at @DlccPrime