Bitfinex, a digital token trading platform for institutional investors in the bitcoin space, has doubled its server capacity.
Bitfinex has increased the volume of heavy duty servers at its Zug-based data centre amid surging demand to trade digital tokens among hedge funds, institutional investors and family offices. The expansive server capacity provides participants from incumbent markets with a level of service on a par with that provided by major stock exchanges.
The heavy duty computational power available on Bitfinex is enabling funds to translate trading strategies from conventional markets into the digital token space. Funds on Bitfinex are deploying a variety of sophisticated strategies, including High-Frequency Trading (HFT) plays such as statistical arbitrage and volatility arbitrage.
“With today’s increase in server capacity, we’ve beefed up the exchange’s front-end and back-end servers,” says Paolo Ardoino, CTO at Bitfinex. “This doubling of server capacity combined with the improvement to internal networking is likely the biggest upgrade we’ve had since we moved to our data center. We have an obsessive interest in technical improvement. This is the reason why hedge funds, institutional investors and professional traders are trading with us.”
As a hub for institutional investors in crypto, Bitfinex is providing a variety of proximity hosting services to meet mushrooming institutional demand. The exchange has collaborated with Market Synergy, a bespoke network solution provider, to offer institutional standard cryptocurrency connectivity, including co-location services.
“We continue to provide Bitfinex with institutional calibre digital asset connectivity,” says James Banister, CEO at Market Synergy. “Bitfinex is a recognised market leader and this significant investment in infrastructure reinforces their commitment to the institutional market. They are ideally placed to maintain their market leading position as institutional demand continues to gather momentum.”
HFT firms are able to obtain secure connectivity via a FIX feed or ISP link to Bitfinex’s digital asset gateway. Bitfinex has about 100 HFT firms from conventional financial markets active on the platform, which began taking out co-location services in 2018 when Bitfinex moved its core infrastructure from a cloud provider to a dedicated datacenter.
