Digital token trading platform Bitfinex has revealed that it has doubled the exchange’s server capacity.
The company has increased the volume of its heavy-duty servers, located in its Zug data centre. The move is a response to the growing demand for trading digital tokens among hedge funds, institutional investors and family offices.
The expanded server capacity allows funds to translate trading strategies from conventional markets into the digital token space. Funds on Bitfinex use a range of strategies, including High-Frequency Trading (HFT) moves such as statistical arbitrage and volatility arbitrage.
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.
Bitfinex is a hub for institutional investors in crypto. The exchange provides a variety of proximity hosting services to meet growing institutional demand. The company has partnered with network solution provider Market Synergy to offer institutional standard cryptocurrency connectivity, including co-location services.
James Banister, CEO at Market Synergy, added:
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.
A FIX feed or ISP link to Bitfinex’s digital asset gateway allow for a secure connectivity for HFT firms. About 100 HFT firms from conventional financial markets are active on the Bitfinex platform, which started taking out co-location services in 2018 when Bitfinex moved its core infrastructure from a cloud provider to a dedicated datacenter.
Bitfinex recently announced an upgrade to the exchange’s matching engine in a move that strengthens its capacity to handle spikes in volatility as volumes continue to surge, driven by growing numbers of institutional investors entering the space.
Independent writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.