Two ex-executives from Jefferies Financial Group are set to launch a cryptocurrency exchange for institutional investors.
The exchange has been named Crossover Markets Group Inc. and will debut “late summer to early autumn” after a recent seed financing round.
Crossover Markets describes the new exchange on its website as “digital asset exchange” that is designed to meet institutional clients’ liquidity needs.
We are thrilled to announce the official creation of Crossover Markets. More announcements coming soon!https://t.co/2igfAQleaS#Crypto #DigitalAssets #institutional #fx
Crossover Markets (@crossover_mkts), April 26, 2022
Jefferies, the U.S.’s largest independent full-service investment banking company, is also the seventh largest global investment bank by revenue according to Dealogic.
Brandon Mulvihill will co-found the exchange and be its CEO. He was previously at the helm Jefferies foreign currency prime brokerage business. CCO Anthony Mazzarese is the other co-founder. Mazzarese has been a long-standing business partner of Mulvihill. Vlad Rysin (ex-chief technology officer at Euronext FX), a trading services company, will join them.
This new exchange will offer faster cryptocurrency trading and lower latency compared to traditional FX and equities. Mazzarese claims that this technology is often missing in retail-focused exchanges.
“It seems that there is a belief that latency doesn’t matter when trading crypto. We disagree.”
“We surveyed our global network of institutional contacts and found that one of their most pressing needs was reliable 24/7 technology with the same level of service and customization features as they have in other markets like FX and equities. Crossover Markets is able to provide exactly this.
Mulvihill stated that although the majority of institutional investors are not yet in the crypto space, they are changing rapidly and stressed the importance for exchanges to keep pace with market maturity.
Related: Crypto gains trust for investment but still lags behind others: Bitstamp report
Bitstamp, a global cryptocurrency exchange, released Tuesday’s survey report. It found that most of the 28615 institutional and retail investors surveyed believe crypto will surpass traditional investment vehicles in a decade. A staggering 80% of institutional respondents responded positively.
Jefferies’ two top executives left Jefferies to start the new exchange in March. However, Jefferies has been growing its crypto services business under Alexander Yavorsky (firm’s managing director for Financial Institutions Group, FIG) Investment Banking). Yavorsky stated that the company is looking into crypto services for trading, prime brokerage and wealth management.
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