Bitfinex has increased its server capacity in order to attract more institutional investors, namely firms operating on high frequency trading.
The digital token trading platform has doubled the exchange’s server capacity to consolidate its position as a preeminent hub for institutional investors within the digital asset space.
The volume of heavy duty servers has been expanded to cater to hedge funds, institutional investors and family offices so they can seamlessly move from incumbent markets to the crypto arena with a level of service on a par with that provided by major stock exchanges.
Bitfinex is connecting from its Zug-based data centre after having established a partnership with Market Synergy in 2018. The company has designed and built a bespoke network for Bitfinex, hosted in a Swiss data center in the heart of Crypto Valley.
The partnership with Bitfinex will also have Market Synergy managing co-location services for Bitfinex’s institutional clients and offering a FIX feed and ISP link to the digital asset gateway.
Doubling the capacity enables funds to translate trading strategies from conventional markets into the digital token space with sophisticated strategies, including High-Frequency Trading (HFT) plays such as statistical arbitrage and volatility arbitrage.
Paolo Ardoino, CTO at Bitfinex, commented: “With today’s increase in server capacity, we’ve beefed up the exchange’s front-end and back-end servers. This doubling of server capacity combined with the improvement to internal networking is likely the biggest upgrade we’ve had since we moved to our data center. We have an obsessive interest in technical improvement. This is the reason why hedge funds, institutional investors and professional traders are trading with us.”
James Banister, CEO at Market Synergy, said: “We continue to provide Bitfinex with institutional calibre digital asset connectivity. Bitfinex is a recognised market leader and this significant investment in infrastructure reinforces their commitment to the institutional market. They are ideally placed to maintain their market leading position as institutional demand continues to gather momentum.”
As a hub for institutional investors in crypto, Bitfinex is providing a variety of proximity hosting services to meet mushrooming demand for institutional standard cryptocurrency connectivity, including co-location services.
This means that HFT firms are able to obtain secure connectivity via a FIX feed or ISP link to Bitfinex’s digital asset gateway. The venue has about 100 HFT firms from conventional financial markets active on the platform, which began taking out co-location services in 2018 when Bitfinex moved its core infrastructure from a cloud provider to a dedicated datacenter.
