Huobi Group announced that it’s expanding into brokerage services that target institutional investors in the cryptocurrency sector.
The platform called Huobi Brokerage was unveiled during WEF 2020 in Davos. The new business line will become part of the Group’s Global Institutional Business (GIB) that Huobi launched last November to monitor its institution-related businesses.
The institution business for Huobi has seen massive increase, growing more than 400% to over 1,600 clients after the foundation of GIB.
The Vice President of global business at Huobi shared the following regarding the institutional demand for digital assets:
There’s an industry-wide consensus that institutional investors and HNWIs will be the major contributors of growth for the crypto economy in 2020 and beyond, but barriers like low liquidity and a lack of asset enhancement products are stalling widespread adoption.
As it usually the case with brokerage platforms, Huobi will navigate its customers’ orders to the exchange that offers the best possible price for the respective trade. What the Huobi Brokerage is using is the so called SOR system, or in other words – advanced trading algorithm and smart order routing system. SOR provides clients with access to liquidity, regulated fiat channel, competitive prices on markets and a one-stop shop for OTC trading services. As for now, Huobi has not revealed to which exchanges it will route the orders.
The brokerage platform has been launched to almost all markets where Huobi operates, except China. Huobi is planning to add XRP, LTC, BCH, ETH and EOS in Q1 2020, while already supporting the following cryptocurrencies for high-volume block trades: TUSD, HUSD, BTC, USDC and PAX.
In Huobi’s words, while 2019 was a year when institutional demand for cryptocurrencies first began, 2020 is a year in which more progress must be made towards servicing both retail and institutional clients’ needs.
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