Fintech solutions provider, Broctagon Fintech Group, gas launched WorldBook, a global crypto movement focused on solving key liquidity issues plaguing the industry.
WorldBook is the world’s first crypto STP (Straight-Through Processing) network with the largest aggregated liquidity pool. The initiative aims to introduce a universal standard of liquidity for digital assets, uniting both processes and technology within the crypto industry under a single framework.
Unlike the highly streamlined Forex or Securities financial markets, crypto trading is highly fragmented with significant price disparity across exchanges. This is largely because of existing market norms where exchanges operate in a silo within their orderbook, limiting their offerings and therefore prices to the participants within.
The eponymous WorldBook combines the orderbooks of all connected exchanges to create a unified orderbook that enables multilateral liquidity flow. Instead of being confined to local orderbooks which may represent less than 1 per cent 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 SOR (Smart Order Routing), which 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. With the WorldBook’s price aggregation, we found that bitcoin had an average negative spread of USD10, even amongst the major exchanges. This means that with over USD15.5 trillion in trading volume over the past year, traders could have saved USD5.7 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,” says Don Guo, Co-Founder and CEO, Broctagon Fintech Group highlighting the issues. “We engineered the WorldBook infrastructure taking a page from the fundamentals of FX interbank liquidity. With our experience as a regulated FX liquidity provider, we believe the Prime of Prime (PoP) model has the potential to disrupt the industry and increase crypto trading volumes by more than 400 per cent in the near future.”
The WorldBook is part of Broctagon’s commitment to propel the crypto industry towards regulatory compliance, adoption, and maturity. As Singapore looks to be a poster child for the crypto industry with its welcoming policies, the homegrown fintech company 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.
For example, the BTSE exchange experienced an eight-fold increase in trading volume, surpassing 10,000 trades across six crypto pairs within the first month.
“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. 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,” says Guo.
“We congratulate Broctagon, which is one of our active members, on their launch of the WorldBook. The growth of our FinTech ecosystem is a collective effort of all members of the community, fintech and financial institutions alike,” says Shadab Taiyabi, President of Singapore FinTech Association, a cross-industry non-profit initiative recognised by the Monetary Authority of Singapore.
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Globally, crypto exchanges that are not within the top three percentile account for only less than 10 per cent of total trading volume, according to data derived from CoinGecko. With its symmetrical flow of liquidity, the WorldBook levels the playing field for newer exchanges to contend and explore new frontiers, driving growth for the entire industry at large.
“We recognise how a standardised framework for liquidity can ensure steady supply and demand for our clients. It is a pleasure to work with the WorldBook, and we shall support them as they look to introduce cohesive standards for the entire industry and elicit greater public adoption of cryptocurrency,” says Weber Woo, CEO, XT Exchange, the first digital asset social trading platform with close to half a million active monthly traders.
Beyond a liquidity network, the Worldbook is also an open initiative to forge greater collaboration amongst industry peers old and new, to create a digital asset landscape primed for multifaceted participation. Amongst its pioneering members are Huobi Group, FCA-regulated Archax, BitKub, as well as RegTech companies such as Horangi and Cypnopsis as well as Defi and blockchain firms like Hodlnaut and Bholdus amongst many others.
