CoinRoutes secures US patent for distributed Smart Order Routing solution for crypto-algo trading
CoinRoutes’ distributed smart order routing allows clients to maintain control over their private wallets and keys, allowing users to execute orders across multiple venues simultaneously and securely.
CoinRoutes has secured a US patent for its fourth-generation enterprise trading solution for the core technology architecture that powers its distributed cryptocurrency Smart Order Router with Cost Calculator.
The patent number: US 11 580 600 B2 protects CoinRoutes’ distributed smart order routing technology which is claimed to be the most cost effective and secure trading solution commercially available.
The SRO solution addresses stock market arbitrage and gives traders full control over their assets, the digital asset-focused algorithmic trading platform said.
“Market dominated by platforms and algos designed for TradFi”
Ian Weisberger, CTO and co-founder of CoinRoutes, said: “Unfortunately for crypto traders, the market is dominated by platforms and algorithms designed for traditional finance and adapted to try to fit the new digital asset space, leading to poor performance and reduced security. “
Dave Weisberger, CEO and co-founder of CoinRoutes added: “When Ian designed the distributed smart order router on a napkin in 2017, I knew we were on to something. The architecture enables CoinRoutes to deliver a secure enterprise solution to every client , at a much lower cost than our competitors without cutting corners on the terabytes of crypto market data that informs the decision-making process of our algorithms.The award of our patent is recognition that CoinRoutes provides our customers with a secure and cost-effective tool previously unavailable for digital assets .”
Jon McLachlan, Chief Security Officer at CoinRoutes, commented: “As the old saying goes, ‘not your keys, not your crypto’. While most people think of that saying in the context of an individual’s crypto assets, the same applies to business trading platforms. With the distributed smart order router, we have built the market-leading multi-exchange trading platform that allows you to retain full ownership and control of all your assets.”
The cryptocurrency market structure is highly fragmented and not amenable to the unique trading characteristics of digital assets, CoinRoutes claims. A multitude of exchanges list cryptoassets at different prices, and because most of these exchanges require traders to use exchange-specific digital wallets, many crypto market participants must trade on one exchange at a time.
Such fragmentation results in the inability to execute trades at the most convenient time, taking into account asset price, trading fees and counterparty risk.
CoinRoutes’ distributed smart order routing allows clients to maintain control over their private wallets and keys, allowing users to execute orders across multiple venues simultaneously and securely.
CoinRoutes architecture features Market Data Ticker Plant, Decision Engine and Smart Order Router. When a client submits an order via CoinRoutes’ user interface or API, the Decision Engine – which subscribes to a consolidated data feed of exchange bids and offers – calculates a target price (CoinRoutes’ proprietary fair value model) to determine the optimal size and timing of orders that must be sent to various arenas.
In addition to providing users with the most efficient cross-exchange trades at a fraction of the cost, the proprietary CoinRoutes platform offers the most secure trading experience on the market by allowing customers to maintain full control of their wallet and exchange keys.
CoinRoutes offers an institutional grade execution management system (EMS) for best execution, with access to over 65 major CEXs, DEXs and liquidity providers covering more than 3000 assets (spot, perpetuals, futures) via a single API or our trading app.
The firm’s algorithms include automated spread trading and multi-product trading in a single order to achieve the lowest costs while minimizing market impact and filling orders faster to reduce slippage.
CoinRoutes also has a built-in transaction cost analysis (TCA) that helps clients evaluate their trading performance across five benchmarks, including its proprietary cost calculator.
