Institutional adoption of crypto is growing year by year. During the last few years, we have observed how financial entities, technological companies, family firms, investment banks, and funds tap into the crypto sector.
This digital landscape offers enormous earning opportunities for institutions, and one of the options to make money in this sector is crypto exchange market making. In this article, we will discuss who the market makers are, briefly review their history, and list the top participants in 2023.
Who are Cryptocurrency Market Makers?
Market makers are financial entities and high-frequency traders who pour large trading volumes into trading exchanges and tokens maintaining sufficient liquidity for other investors and customers.
A good example of an institutional crypto platform can be WhiteBIT or Binance Institution. Market makers play a crucial role in their trading landscape, creating a favorable environment for trading and ensuring there are always buyers and sellers for assets.
The first market makers emerged in the 2010s, long before the Bitcoin boom and mass adoption of crypto by institutions happened. GSR was the first market maker – a pioneer in providing liquidity to crypto platforms. Early market makers used manual strategies for continuously placing buy and sell orders on trading platforms to maintain liquidity.
Over time, high-frequency traders stepped in, bringing a sophisticated algorithmic crypto market maker strategy, propelling market makers to the forefront of the trading landscape. During and after the Bitcoin bull run in 2017, the landscape of market makers expanded, welcoming such firms as Kairon Labs, Amber Group, and Wintermute.
The bull run in 2021, when Bitcoin reached its historical peak, boosted the crypto adoption by institutions. Today, in 2023, there are numerous crypto market-making software developers and companies, enabling reliable tools for financial entities and high-frequency traders to perform the best among competitors.
Crypto Market Makers List
Some well-known and established market makers include:
- Bluesky Capital – a global quantitive investment company offering liquidity provision services for crypto assets and trading platforms.
- Kairon Labs – a crypto market maker that uses cutting-edge algorithmic software integrated with over 100 trading platforms.
- Wintermute – a market maker partnering with the world’s biggest trading platforms.
- Jump Trading – high-frequency trading strategies and liquidity provision in various financial markets.
- GSR – a market-making and algorithmic trading company specializing in digital assets, providing liquidity and risk management solutions.
Starting from the 2010s, crypto assets adoption among traditional companies gradually increased. The more institutional players stepped in, the more liquidity markets received. Over time, market makers started to use sophisticated tools and software to automate liquidity provision, resulting in the maturity of the crypto market.