PARTNER CONTENT
With inflation and interest rates on the decline, hedge funds have increasingly turned to digital assets. Having recently won Prime Broker of the Year – APAC at the Hedgeweek Global Digital Assets Awards 2024, Jack Yang Founder & CEO of LTP shares how the firm’s services have helped clients make the jump…
What challenges are the hedge fund industry facing, and how can technology help manage them?
The global hedge fund industry has been challenged with low returns and high costs for over a decade; investing in digital assets provides both an alternative risk/reward investing opportunity, at the same time as preparing funds/asset managers to transition to a new operating model and market structure that will be dominated by distributed ledger technology in the future. Those funds that invest in products that are used in this transformative technology early will be ahead of the pack once the tipping point comes.
In terms of competition, digital assets provide a highly differentiated product offering to attract capital that might ordinarily coalesce around less interesting but larger-scale hedge funds. As we enter a phase of increased global uncertainty, digital assets help funds/asset managers diversify and hedge against volatility that will surely impact all historic asset classes.
Similar to the dot.com talent drain of the late 1990s/early 2000s, digital assets represent a ‘go-to’ choice for young, talented candidates; funds/asset managers who are active in digital assets will be able to attract the brightest young talent entering the market.
What is LTP’s service offering, and what makes it special?
LTP’s main business areas cover three aspects: Prime Brokerage, Capital Introduction, and Financing.
In terms of Prime Brokerage, LTP offers a variety of tailored solutions specifically designed for digital asset institutions, providing best-in-class solutions with a focus on speed, security, and amplified value creation.
LTP’s Direct Market Access (DMA) infrastructure provides a comprehensive ‘one-stop’ solution, enabling institutional traders to directly connect to major centralised exchanges (CEXs) and decentralised exchanges (DEXs). LTP also offers competitive rates while ensuring best-in-class features of functionality with security, with the vision of helping its clients to be successful.
Through carefully designed networks and cross-platform infrastructure, LTP’s platform enhances its clients’ ability to compete, fully leveraging low-latency market data and high-throughput order execution. LTP also collaborates with industry-leading custodians like Ceffu and Copper to ensure client’s assets are protected and managed to the highest standards.
LTP’s Capital Introduction offering meanwhile, connects digital asset managers with investors, providing asset linkage and a wealth of investment opportunities.
As a leading broker in the digital asset space, LTP has a unique advantage in connecting top global fund managers with professional and institutional investors. LTP collaborates with experienced and successful digital asset trading companies, offering investors unique risk/return outcomes, and diversified digital currency asset management products aimed at helping investors achieve stable asset growth.
LTP is committed to providing balanced risk/return investment services. To this end, LTP empowers fund teams with strong support, including favourable trading fees, industry-leading low latency infrastructure, professional risk management consulting, and secure and reliable asset custody solutions. LTP works closely with clients to understand their needs and goals, customising asset management solutions according to their specific requirements.
LTP’s Digital Asset Financing services are designed to provide efficient and scalable capital to trading teams, helping them increase their capital efficiency and potential returns.
LTP focuses on providing customised solutions for institutional and professional investors, with an emphasis on market-neutral trading strategies. Based on the evaluation of trading team performance and strategies, LTP helps clients to enhance their investment strategies through lending to achieve potentially larger investment returns.
LTP supports major cryptocurrencies like BTC and USDT, offering competitive rates to adapt to the ever-changing market environment.
How have your services helped hedge fund clients navigate the economic landscape of the past 12 months?
In an environment where inflation and interest rates have ticked down, larger hedge funds have been looking to allocate a larger proportion of their assets back into digital assets; LTP is helping these and alternative assets hedge funds to access digital assets in a measured way, with a trusted partner who can facilitate volume in size.
At the same time, LTP has helped many boutique hedge funds access venues cost effectively, especially those wishing to utilise cap intro to scale up their activity. This is especially pertinent now that a bull run is in effect on crypto.
What innovation from the past 12 months are you most proud of?
The RapidX product is dedicated to providing users with a one-stop comprehensive financial service for digital asset trading, land financing. It supports users in the 1+N model by connecting to multiple exchanges through LTP, allowing them to flexibly manage investment portfolios across multiple exchanges while enjoying an efficient and low-fee trading experience. RapidX trading services cover the following areas:
- Supported Exchanges: Top exchanges with business types including spot trading and perpetual contracts.
- Perpetual Contracts: Perpetual contracts support both cross margin and one-way position modes.
- Unified Trading Account: RapidX integrates with exchanges using a unified trading account model, supporting cross-currency margin and allowing USDT, USDC, BTC, ETH, LTC, and XRP to be used as collateral.
Jack Yang, Founder and CEO, LTP – Jack is a seasoned leader in the world of digital assets. His journey began at TokenInsight, where he rapidly ascended to partner status, showcasing exceptional talents in crypto quant research and investment. Beyond financial success, Jack co-founded Blofin, amassing an impressive AUM exceeding $200m. His influence extended to pioneering the largest crypto quant fund database in the Asia-Pacific region, and he established the industry’s largest quant trading competition, solidifying his status as a thought leader and trailblazer. Jack’s leadership at LTP reflects his dedication to redefining finance through digital assets.
