New York, NY June 22, 2021 – AlphaPoint, a leading provider of digital asset exchange infrastructure, and Solidus Labs, which specializes in crypto-native risk monitoring and market surveillance, announced today a partnership designed to support growing demand for advanced risk monitoring standards amongst digital asset firms.
Since 2013, AlphaPoint’s technology has been used by over 150 platforms in over 35 countries. In the first two quarters of 2021, inbound demand for AlphaPoint’s solutions spiked 240%, reflecting the growing interest in institutional-grade digital asset exchange, brokerage, asset management, custody and security token platforms.
Similarly, Solidus Labs data shows demand for the firm’s Wall Street-grade crypto-native risk monitoring solutions has increased 400%, including a 10X increase in institutional client volume. Solidus uses crypto-native technology and machine learning to help digital asset firms monitor for market manipulation and trade abuse, including known forms of market manipulation like wash-trading and spoofing, as well as a growing list of new crypto-specific concerns.
As part of the partnership, each firm’s clients will enjoy streamlined access to the other firm’s suite of solutions. AlphaPoint clients will be able to utilize Solidus Labs’ advanced risk monitoring and compliance dashboard to address intensifying regulatory requirements and expectations by institutional investors to have such systems in place. Similarly, Solidus Labs will offer its clients the wide range of exchange infrastructure technology provided by AlphaPoint.
Both institutional and retail investors are adopting digital assets at a growing rate, but market manipulation, other trading risks and lacking infrastructure continue to be a major hurdle for growth. Studies and reports consistently raise concerns that as much as 90% of crypto trading volume is potentially manipulative, a concern that the SEC cites repeatedly when rejecting Bitcoin-ETF applications. According to a Benchmarking Report on credible volume released by CryptoCompare, only 5% of crypto exchanges deploy advanced market surveillance and risk monitoring, compared to close-to-complete coverage in traditional markets. The partnership between Solidus and AlphaPoint is aimed at increasing those rates, as part of the maturation of crypto markets.
“As the leading provider of white label exchange solutions, it’s important that we provide our global customers options to integrate with threat detection software for identifying market manipulation and monitoring for irregular behavior,” said Igor Telyatnikov, Co-founder and CEO, AlphaPoint. “AlphaPoint has always been proactive to enable our customers to meet their compliance and regulatory needs. Adapting innovative technology solutions, such as the financial markets surveillance software from Solidus Labs, provides customers the necessary tools and resources to address the rapidly changing financial crime, risk and compliance landscape.”
“Strong exchange infrastructure and strong risk monitoring are key for the growth of a crypto business, making this a natural partnership responding to very tangible demand we’re both hearing from our clients.” Says Asaf Meir, Solidus Labs’ Chief Operating Officer. “AlphaPoint is a leader in enabling high-performing high-standard crypto platforms, and we’re delighted our solutions can complement their offering, while theirs can complement our offering to our clients.”
AlphaPoint is a white-label software company powering crypto exchanges worldwide. Through our secure, scalable, and customizable digital asset trading platform, AlphaPoint has enabled over 150 customers in 35 countries to launch and operate crypto markets, as well as digitize assets. AlphaPoint and its award winning blockchain technology have helped startups and institutions discover and execute their blockchain strategies since 2013.
About Solidus Labs
Solidus Labs is a team of finance veterans on a mission to enable safe and regulated crypto markets through tailored compliance and risk monitoring solutions. The firm offers the first crypto-native, comprehensive, automated, and testable market surveillance and risk monitoring hub tailored for digital assets. Crypto businesses globally rely on Solidus’ solutions in order to apply for licensing, attract institutional investors, protect their users, and grow faster – and safer.