GoDark Launches Institutional Dark Pool for Digital Assets
GoDark, an institutional dark pool tailored specifically for digital assets, is now available. It’s developed with support from experts in cryptocurrency storage and trading, including Copper and GSR. This service aims to facilitate large orders without influencing market prices.
The launch is bolstered by notable users like FRNT Financial, Stillman Digital (affiliated with DeFi Technologies), Fasanara Capital, and others. This consortium indicates strong interest and trust in the platform from the industry.
Interestingly, over half of the trading volume in US stocks occurs in dark pools. The logic behind this? Large financial players usually prefer not to unsettle the market when they’re buying or selling substantial amounts of an asset. Dark pools help them manage liquidity without drawing attention, striking a balance between the anonymity of OTC trading and the access of centralized exchanges.
Dennis Dariotis, the founder and CEO of GoQuant, which developed GoDark, pointed out that the level of sophistication in the infrastructure for dark pools in cryptocurrencies is significantly behind that of traditional finance. “There really aren’t organized dark pools for cryptocurrencies,” he mentioned. While decentralized exchanges (DEXs) exist, there’s a gap when it comes to trading off-chain while benefiting from the actual underlying asset.
The trade-offs between centralized exchanges and OTC desks are notable. Centralized exchanges, though highly liquid, can inadvertently cause market shifts due to their transparency. OTC desks can be opaque, resulting in spread markups and hefty fees. Dark pools aim to merge the best features of both systems.
Dariotis emphasized that the need for a dark pool in the crypto space is essential, particularly in light of the extreme volatility and the dispersed liquidity across various platforms.
Initially, GoQuant operated as a market data provider catering to medium-high frequency crypto-native funds. Dariotis and his team then expanded their offering to create a complete trading system that prioritized speed and efficient trade execution.
In addition to GoDark, Dariotis recently rolled out GoCredit, a platform focused on borrowing and lending, aimed at banks, traditional hedge funds, and similar entities.
Upon its launch, GoDark will offer spot cryptocurrency trading and plans to eventually delve into perpetual futures, traditional futures, options, and more.
Promising features include ultra-low-latency matching, non-custodial payments, and fill protection, such as minimum fill sizes. There’s also an option for orders to only execute if they match the highest prices available at various lit venues, akin to adhering to the National Best Bid and Offer (NBBO) standard for US stocks.
