Partnership Overview

In a groundbreaking collaboration, UK-based crypto lending and liquidity provider B2C2 has joined hands with SFOX, a prominent U.S. company catering to institutional investors. This alliance, announced on February 12, aims to streamline access for SFOX clients—ranging from asset managers to family offices—enabling them to tap into B2C2’s expansive liquidity pools and competitively priced over-the-counter (OTC) markets all from a single, efficient entry point.

Why This Partnership Matters

This partnership isn’t just another corporate handshake; it’s a strategic move that enhances the trading experience for those who handle significant capital. Danny Kim, the Head of Growth at SFOX, encapsulates the sentiment by stating, “We are delighted to partner with B2C2, the largest OTC liquidity provider whose streaming pricing and electronic trading capabilities are relied on by institutional market participants globally.” Essentially, this means SFOX clients are in for a treat, gaining access to a fresh source of OTC liquidity and improved pricing options.

Insights from the Industry Leaders

Max Boonen, the founder and CEO of B2C2, echoed the same excitement, saying, “Our partnership enables a broader set of market participants to access B2C2’s real-time OTC pricing and deep two-way markets.” This collaboration emphasizes a notable shift in how digital assets are traded. Just as foreign exchange (FX) markets thrive on OTC trading, the crypto asset class is gradually following suit, resulting in tighter spreads and enhanced liquidity—much to the benefit of investors and traders alike.

Impact on Cryptocurrency Trading Landscape

This partnership signifies that cryptocurrency OTC markets are increasingly overshadowing traditional exchanges. According to reports, a majority of cryptocurrency trading volume is now predicted to stem from OTC activity, highlighting a significant trend in market preferences over the last three years.

Statistics That Speak Volumes

• A report by Aite Group suggests OTC activity will soon dominate the cryptocurrency trading volume.
• According to data by Tabb Group, the proportion of U.S. equities traded off-exchange surged from 34.7% in December 2018 to 38.6% in April 2019.
• This trend is echoed in Europe, where off-exchange trading accounted for 9.6% of all on-exchange activity during the same period.

The increase in off-exchange trading indicates a notable shift in how institutional players are engaging with the crypto market. As the industry matures, partners like B2C2 and SFOX are leading the charge into a more sophisticated and accessible trading landscape.