Huobi launches licensed brokerage platform targeting institutional investors during Davos 2020
At the World Economic Forum in Davos, Huobi announced the launch of Huobi Brokerage, a new product offering for institutional and high-net-worth clients. It is the first product launched out of Huobi’s Global Institutional Business (GIB), which launched in November and has since grown to 1,700 clients.
According to the press release:
“Huobi Brokerage leverages advanced trading algorithms and smart order routing (SOR) to provide institutional clients with access to high-quality liquidity pools, competitive prices, a regulated fiat channel, and an all-in-one solution for OTC trading. Through the platform, clients can access real-time trade quotes and instant price locks, as well as support for high-volume block trades across major cryptocurrencies and stablecoins”
Current offerings include exchange liquidity aggregation and customized financing and lending products with other services such as interest rate products, alpha products, and custodian services that will be rolled out in Q2 of 2020.
Why it matters:
- While the early days in crypto trading were exclusively retail-driven, the last few years a shift towards more institutional trading has taken place as the infrastructure has matured to mirror the legacy financial world. Brokers play a major role in this institutional participation as they look to serve the needs of professional investors. The entrance of a major player like Huobi is a positive development as it introduces a new suite of products that institutional clients need to properly invest and hedge their risk.
- The brokerage market is becoming increasingly crowded as firms with tangential businesses such as custody and exchanges are entering, such as Anchorage, which announced the launch of their brokerage service last week. While these firms continue to expend resources on servicing institutional clients, it remains a question if traditional institutions will feel comfortable trading this new asset class.
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