How Bitstamp Is Leveraging Nasdaq Trading Technology to Innovate Its Crypto Market
Bitstamp has supported crypto investors and traders since 2011, serving as one of the world’s longest-running crypto exchanges. Its offering has evolved over time, and currently, Bitstamp offers trading of 42 cryptocurrencies as well as complementary services like asset staking. In a recent interview, Bitstamp’s Chairman of the Advisory Board, David Osojnik, discussed how Nasdaq’s trading technology has contributed to Bitstamp’s strategic objectives and commitment to providing best-in-class services to over four million customers around the world.
Bitstamp’s main priority is to focus on its core exchange business rather than diversifying into other services. “This intense focus has allowed us to provide an unparalleled level of service to our clients, and our technology is what underpins it all,” said Osojnik. Bitstamp’s in-house developed matching engine was no longer up to the challenge of the rapid growth in the cryptocurrency industry. In its technology vendor search, Bitstamp desired a solution with top-of-the-line performance as well as customizability since the cryptocurrency industry is evolving so rapidly. “We wanted our institutional customers to feel comfortable and confident when using our exchange and make it compatible with its dashboards and existing technical setups.” The need for stability and compatibility with capital markets standards is what ultimately led Bitstamp to choose Nasdaq’s trading technology.
Nasdaq’s trading technology is horizontally scalable and enables a sustained load over the trading day of up to 50,000 events per second, per partition. Bitstamp’s implementation of Nasdaq’s matching engine enables the company to comfortably scale all aspects of its exchange and systems without worrying that they will hit the limits of its core infrastructure’s capabilities.
Implementing Nasdaq trading technology has improved Bitstamp’s exchange performance, bringing its platform’s execution efficiency on par with traditional finance standards. New features such as additional asset classes, more trading pairs for existing assets, and new order types can be seamlessly added, thus allowing the exchange to bring new products to market faster and meet the needs of its customers on the evolving crypto market. In 2021, Bitstamp has added 53 new trading pairs without reducing performance on existing pairs. Nasdaq’s trading technology is compatible with traditional capital markets standards like FIX, enabling Bitstamp to evolve its infrastructure in a way that is familiar to players from markets like FX and commodities and allows these clients to easily integrate Bitstamp into its existing dashboards and workflows.
Nasdaq provides cryptocurrency exchange operators with resilient and scalable technology solutions to support high-volume trading and protect markets from manipulation with comprehensive market surveillance capabilities. To learn more about Nasdaq’s Cryptocurrency Exchange Technology, you can visit our website.
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