KEY TAKEAWAYS
- Kraken introduces a new colocation service to enhance trading performance with ultra-fast execution capabilities.
- Clients can access low-latency trading through Kraken’s European data center, with options for cloud compute or physical hardware installation.
- The partnership with Beeks aims to set a new benchmark for low-latency, institutional-grade infrastructure in the crypto space.
- Kraken’s colocation services are designed to ensure fair and transparent market access for all traders, not just institutions.
Kraken has announced a new colocation service aimed at providing clients with ultra-fast execution capabilities. The service, set to launch later this year, is designed to enhance trading performance and scalability while ensuring fair and transparent access to global cryptocurrency markets. More details can be found here.
Clients will have the opportunity to access ultra-low-latency trading through Kraken’s European data center by renting cloud compute from Beeks, a provider known for low-latency compute, connectivity, and analytics solutions. Additionally, eligible clients with specific technical requirements will have the option to install physical hardware at the data center to access colocation services directly.
Shannon Kurtas, Head of Exchange at Kraken, stated, “Kraken has spent over a decade continuously enhancing our infrastructure and technology, and this is the next step in that evolution.” By collaborating with Beeks, Kraken aims to facilitate lower latency, more efficient price discovery, and deeper liquidity across its spot and derivative markets.
While the exact latency improvements will depend on client location, those utilizing Beeks’ Exchange Cloud® colocation services will experience similar low-latency benefits as those installing physical hardware. For instance, traders operating from London can expect sub-millisecond latency.
Gordon McArthur, CEO of Beeks Financial Cloud, commented on the partnership, highlighting shared values of performance, transparency, and trust. He noted that this collaboration marks a first in the crypto space, setting a new benchmark for low-latency, institutional-grade infrastructure.
McArthur added, “Together, we’re setting a new benchmark for low-latency, institutional-grade infrastructure, ensuring all traders — regardless of size — benefit from the security, reliability, and performance they need.” This initiative aims to lower barriers to entry and level the playing field, enhancing access, execution speed, and market fairness for all.
Kurtas emphasized that Kraken’s approach to colocation services is unique, as it is accessible to all partners and clients, not just institutions. This ensures active traders receive an enhanced experience while maintaining a commitment to equal and fair market access, a fundamental value in the cryptocurrency industry.
Why This Matters: Impact, Industry Trends & Expert Insights
Kraken’s introduction of a new colocation service aims to enhance trading performance by offering ultra-low-latency execution capabilities. This initiative is set to improve market access and fairness for traders by leveraging advanced infrastructure.
Recent industry reports indicate that colocation services are becoming increasingly vital for cryptocurrency markets, particularly for high-frequency trading. This aligns with Kraken’s strategy to provide cost-effective and secure environments that support the growing computational demands in the crypto sector.
As per insights from CoinAPI, low-latency trading is crucial for maximizing profits in volatile crypto markets. This supports Kraken’s initiative to offer sub-millisecond trading capabilities, which is essential for capitalizing on fleeting market opportunities.
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