Brandon Mulvihill, Co-Founder and CEO of Crossover Markets, dug into the growing crypto market structure and institutional adoption in an interview with Finance Magnates' Jonathan Fine at the Finance Magnates London Summit 2024 (FMLS:24).

His insights shed light on inefficiencies in crypto exchanges, likening them to retail brokers in FX markets, and emphasized the urgent need for disruption through ECNs offering lower trading costs. Mulvihill also highlighted how pro-crypto political sentiment and ETF approvals have driven institutional participation, with rising volumes signalling increased M&A and IPO activity on the horizon.

Crossover Markets Launches First ECN

Mulvihill explained the foundation of Crossover Markets and its flagship product, CROSSx, which he described as the first ECN (electronic communication network) in the crypto space. Comparing traditional crypto exchanges to retail brokers in FX markets.

“What we are with our product CROSSx is an execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term-only platform in the digital asset space, specifically an ECN. We were the first ECN in crypto. What we saw was that crypto exchanges, at their core, are client-facing brokers, similar to how IG Group compares to OKX or Coinbase in retail FX,” Mulvihill stated.

Institutional Exchanges Present Disruption Opportunity

“Institutional exchanges are analogous to Finalto or IS Prime. They use central limit order book technology, meaning one market data and one pool of liquidity, creating uniformity across over 300 institutions globally. We saw this as an opportunity to disrupt the market,” he added.

Expanding on the parallels, he said: “What they really are at heart is a client-facing broker.” Mulvihill underscored that this uniformity presented an opportunity for disruption, saying: “We said, wait a minute. If you look at the FX market, ECNs came in and were disruptive for lots of reasons. Let’s put our hat into the ring and become the first-ever ECN in crypto.”

Pro-Crypto Sentiment Drives Institutional Participation

One critical inefficiency Mulvihill addressed was the high cost of trading in crypto markets. “The cost of trade is too high,” he stated, explaining that retail traders often face costs of $4,000–$8,000 per million traded, while wholesale costs range from $500–$1,000. In contrast, CROSSx offers significantly lower rates. “Our default rate is one basis point per million, and we’re seen as the real cheap guys,” he noted.

Mulvihill also reflected on broader developments in the market, highlighting the positive influence of pro-crypto political sentiment and ETF approvals from institutions like BlackRock. “You can’t trivialize it; it’s been the most positive macro influence on the crypto space since I’ve been involved,” he remarked. He observed a notable increase in institutional participation, with volumes steadily climbing.

M&A and IPOs to Surge

Looking ahead, Mulvihill forecasted robust growth in M&A activity and IPOs within the crypto space. “I think people are going to see a significant increase in M&A activity and IPOs in the crypto space,” he predicted.

This optimism, he explained, stems from growing regulatory clarity. “There’s a fundamental and collective belief that the momentum behind a regulatory structure in the US is now palpable. It’s real.”

Crypto Market Needs Structural Improvement

Mulvihill stated that advancements in technology and settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term solutions could address current barriers, contributing to a more efficient and accessible market for institutional participants.

He concluded by highlighting the need to reduce costs and improve market infrastructure to support institutional adoption. “Crypto has been, from a market structure standpoint, very immature,” Mulvihill acknowledged.

Brandon Mulvihill, Co-Founder and CEO of Crossover Markets, dug into the growing crypto market structure and institutional adoption in an interview with Finance Magnates' Jonathan Fine at the Finance Magnates London Summit 2024 (FMLS:24).

His insights shed light on inefficiencies in crypto exchanges, likening them to retail brokers in FX markets, and emphasized the urgent need for disruption through ECNs offering lower trading costs. Mulvihill also highlighted how pro-crypto political sentiment and ETF approvals have driven institutional participation, with rising volumes signalling increased M&A and IPO activity on the horizon.

Crossover Markets Launches First ECN

Mulvihill explained the foundation of Crossover Markets and its flagship product, CROSSx, which he described as the first ECN (electronic communication network) in the crypto space. Comparing traditional crypto exchanges to retail brokers in FX markets.

“What we are with our product CROSSx is an execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term-only platform in the digital asset space, specifically an ECN. We were the first ECN in crypto. What we saw was that crypto exchanges, at their core, are client-facing brokers, similar to how IG Group compares to OKX or Coinbase in retail FX,” Mulvihill stated.

Institutional Exchanges Present Disruption Opportunity

“Institutional exchanges are analogous to Finalto or IS Prime. They use central limit order book technology, meaning one market data and one pool of liquidity, creating uniformity across over 300 institutions globally. We saw this as an opportunity to disrupt the market,” he added.

Expanding on the parallels, he said: “What they really are at heart is a client-facing broker.” Mulvihill underscored that this uniformity presented an opportunity for disruption, saying: “We said, wait a minute. If you look at the FX market, ECNs came in and were disruptive for lots of reasons. Let’s put our hat into the ring and become the first-ever ECN in crypto.”

Pro-Crypto Sentiment Drives Institutional Participation

One critical inefficiency Mulvihill addressed was the high cost of trading in crypto markets. “The cost of trade is too high,” he stated, explaining that retail traders often face costs of $4,000–$8,000 per million traded, while wholesale costs range from $500–$1,000. In contrast, CROSSx offers significantly lower rates. “Our default rate is one basis point per million, and we’re seen as the real cheap guys,” he noted.

Mulvihill also reflected on broader developments in the market, highlighting the positive influence of pro-crypto political sentiment and ETF approvals from institutions like BlackRock. “You can’t trivialize it; it’s been the most positive macro influence on the crypto space since I’ve been involved,” he remarked. He observed a notable increase in institutional participation, with volumes steadily climbing.

M&A and IPOs to Surge

Looking ahead, Mulvihill forecasted robust growth in M&A activity and IPOs within the crypto space. “I think people are going to see a significant increase in M&A activity and IPOs in the crypto space,” he predicted.

This optimism, he explained, stems from growing regulatory clarity. “There’s a fundamental and collective belief that the momentum behind a regulatory structure in the US is now palpable. It’s real.”

Crypto Market Needs Structural Improvement

Mulvihill stated that advancements in technology and settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term solutions could address current barriers, contributing to a more efficient and accessible market for institutional participants.

He concluded by highlighting the need to reduce costs and improve market infrastructure to support institutional adoption. “Crypto has been, from a market structure standpoint, very immature,” Mulvihill acknowledged.