by Cindy Huynh
Bitstamp, a Luxembourg-based cryptocurrency exchange, and Cinnober, a global independent provider of trading and clearing technology for the financial sector, recently partnered to increase the Bitstamp platform’s order matching speed and throughput. According to Bistamp’s blog post, published on November 5, 2018, Cinnober’s TRADExpress Trading System will replace Bitstamp’s in-house developed matching engine.
Order Matching Speed Now 1250x Faster
Bitstamp, a cryptocurrency exchange formed in 2011 has quickly grown to become one of the largest exchanges by trading volume in the world. According to the Blockchain Transparency Institute Report, Bitstamp ranks 10 in the global cryptocurrency exchange list, with over 28,000 active users and over $77 million in cryptocurrency trading volume in a 24-hour time frame.
The Bitstamp post mentioned that upgrading their existing technology with TRADExpress will be a significant move and a crucial step in their mission to connect the cryptocurrency industry and traditional finance markets. The cryptocurrency exchange believes that the new matching mechanism will push the technological frontier in digital currency trading.
“While Bitstamp’s matching engine was already excellent by crypto standards, this will put us in the same league as traditional exchanges with decades of experience,” said David Osojnik, Bitstamp’s Chief Technology Officer. “Our platform’s order matching speed is expected to become 1250x faster, while throughput will increase by 400x.”
The cryptocurrency exchange will implement TRADExpress in a few phases. The first phase will occur in the first quarter of 2019. It will be performed entirely by the end of the second quarter. Bitstamp hopes that the rollout of TRADExpress will help it attract emerging traders as it will also increase their capacity and ability to provide additional services without any decline in performance.
Bitstamp Takes Safety and Security Seriously
Bitstamp chose Cinnober’s matching system because of the company’s strong track record, especially when it came to worldwide financial marketplaces with clients including the Asia Pacific Exchange, the Australian Securities Exchange, the Japan Exchange Group and many more. Cinnober also received an acquisition offer from Nasdaq in September 2018. While Cinnober’s board of directors recommended that the company should accept the acquisition agreement, the company has not completed the deal yet.
Furthermore, Cinnober also understood Bitstamp’s vision and were able to work closely with the cryptocurrency exchange to tweak and customize the technology to meet Bitstamp’s needs. Peter Lenardos, the CEO of the Cinnober Group, noted that Bitstamp’s decision to upgrade trading technology not only boosts Bitstamp’s performance and stability, it also shows that the exchange is firmly committed to the safety and security of the marketplace.