OTC liquidity
FinchRails
TL;DR Key takeaways
TL;DR
- FinchTrade became Cryptix's primary liquidity partner, enabling real-time crypto conversions and improving liquidity, support, and treasury efficiency.
- FinchTrade aggregated deep external liquidity and restreamed it into Cryptix's flows, delivering better prices and uninterrupted conversion capacity.
- Capital requirements fell from full pre-funding to 10–20% collateral, but Cryptix still must post collateral and rely on FinchTrade liquidity.
- Assess FinchTrade's liquidity depth, post-trade settlement terms, 10–20% collateral model, and MarketGuard compliance for operational fit.
Cryptix is a B2B company providing cryptocurrency payment services for merchants. They utilize FinchTrade as their primary liquidity provider to facilitate real-time currency exchanges, converting crypto to other cryptocurrencies or euros.
The problem
Before partnering with FinchTrade, Cryptix faced:
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Limited Liquidity Management:
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Limited liquidity and inefficiencies on centralized exchanges hindered Cryptix's ability to facilitate real-time crypto conversions.
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Operational Inefficiency:
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High IT costs associated with connecting and maintaining connections to multiple exchanges.
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Poor customer support from mainstream crypto exchanges negatively affected operational efficiency.
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Poor Treasury Management:
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Difficulties managing funds on centralized exchanges and suboptimal capital utilization due to substantial pre-funding requirements and extra transaction costs.
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Poor Risk Management:
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High counterparty risk particularly due to 100% pre-funding requirements.
Before / After — Cryptix partnership with FinchTrade
| Criteria | Before partnering with FinchTrade | What we offered (FinchTrade) |
|---|---|---|
| Liquidity management | Before partnering with FinchTradeLimited liquidity and inefficiencies on centralized exchanges hindered real-time crypto conversions | What we offered (FinchTrade)Provided aggregated access to deep liquidity pools at better prices enabling seamless and efficient conversions |
| Capital / settlement | Before partnering with FinchTradeSuboptimal capital utilization because of substantial pre-funding requirements | What we offered (FinchTrade)Post-trade settlement and reduced collateral needs (trade with 10–20% of funds as collateral) |
| Operational support & costs | Before partnering with FinchTradeHigh IT and operational costs from connecting to multiple exchanges and poor exchange support | What we offered (FinchTrade)Dedicated account management and transparent pricing reduced operational friction and cost uncertainty |
| Compliance burden | Before partnering with FinchTradeHigh counterparty risk and risk-management issues due to 100% pre-funding | What we offered (FinchTrade)Robust AML/KYC solution (MarketGuard) reduced compliance workload and supported regulatory standards |
The Solution
What we offered:
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Aggregated Liquidity:
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FinchTrade provided access to deep liquidity pools at better prices, enabling seamless and efficient crypto conversions.
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The technology used by FinchTrade allows restreaming of external liquidity even if the internal FinchTrade’s liquidity is unavailable for any reason.
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Dedicated Account Manager:
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Personalized and responsive support ensured that Cryptix's operational issues were addressed promptly and effectively.
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Non-Custodial Services:
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Flexible Settlement: Post-trade settlements improved Cryptix's liquidity management.
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Reduced Capital Requirements: Cryptix could trade with only 10-20% of funds as collateral, significantly lowering the capital locked in pre-funding.
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Enhanced Trading Flexibility: Cryptix could maintain funds in preferred locations while trading.
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Transparent Pricing:
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No hidden fees which allow Cryptix to manage trading costs predictably.
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Robust Compliance:
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Our advanced AML/KYC solution, MarketGuard, ensured Cryptix's compliance with regulatory standards, significantly reducing their workload related to AML requests from regulatory authorities.
Results & Feedback
Operational Impact:
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Cryptix successfully connected to FinchTrade, processing a significant portion of its transactions.
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Improved transaction speed and accuracy due to better liquidity and support.
Client Satisfaction:
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Enhanced customer support and transparent pricing led to increased client satisfaction.
"When selecting partners, we prioritize reliability, open communication, and mutual benefits. Ultimately, our decision led us to choose Finchtrade." – Kristina Melamed, the CPO of Cryptix
The partnership has driven Cryptix’s growth, with plans to onboard new clients and expand transaction volumes. Now Cryptix intends to add new tokens on various blockchains and explore further integration opportunities to enhance services.
For more information about how FinchTrade can support your business, reach out to us. We're here to help and answer any questions you may have.
