Anchorage Plans to Take on Big Crypto Trades with a Dark Pool Deal
The crypto landscape is evolving, and Anchorage Digital, a global crypto platform known for its institutional custody, staking, and trading services, is making a significant move. Despite past challenges, including getting "debanked" and testifying before a Senate committee on behalf of the crypto industry – one that often feels unfairly treated – Anchorage is pushing forward.
Now, the crypto world is about to get a dark pool of its own. On Wednesday, the custody service Anchorage announced a strategic partnership with a firm called Oasis Pro Markets. This collaboration aims to provide institutional investors with a discreet and efficient way to execute large cryptocurrency trades.
What is a Crypto Dark Pool?
A dark pool allows oversized market players to trade large blocks of digital assets without the trade being visible to the broader public. Similar to dark pools in traditional markets, these systems are designed to minimize market impact when executing large orders. Their origins in traditional markets stem from the need to facilitate block trades without influencing price discovery prematurely.
Why is Anchorage Digital Creating a Dark Pool?
Dark pools are tailored for large-scale traders, i.e, primarily institutions and whales. The purpose here is to enable them to trade in big sizes off the public market and avoid slippage or front-running that can occur when large orders are placed on public exchanges. This benefits institutions looking to invest significant capital in digital assets without disrupting market prices.
A dark pool, also known as an alternative trading system (ATS), allows investors to perform huge trades while remaining anonymous. Read More! This anonymity protects institutional investors\' strategies and prevents competitors from gaining an unfair advantage.
About Anchorage Digital
About Anchorage Digital: Anchorage Digital is a global crypto platform that enables institutions to participate in digital assets through custody, staking, trading... and now, through its partnership with Oasis Pro Markets, access to a cutting-edge dark pool designed for large-scale crypto transactions.