CoinRoutes, a platform catering to institutional cryptocurrency trading, has broadened its capabilities by acquiring QIS Risk, a firm specializing in portfolio and risk oversight for digital asset managers, according to a company announcement made public on Tuesday.
The acquisition, valued at $5 million through a combination of cash and equity, merges CoinRoutes’ sophisticated algorithmic trading technology with QIS Risk’s robust portfolio monitoring and risk assessment tools.
Currently, CoinRoutes facilitates connections to over 50 exchanges and access to more than 3,000 different digital assets. QIS Risk complements this by integrating with over 70 data sources, providing real-time monitoring and analytical insights.
The newly combined platform aims to deliver institutional-grade trading solutions across both centralized exchanges (CEX) and decentralized exchanges (DEX). Features will encompass real-time portfolio tracking, profit and loss analysis, stress testing capabilities, counterparty risk management tools, and the ability to capture options trades for Deribit and over-the-counter (OTC) positions. The platform’s reach will also extend to decentralized finance (DeFi), enabling the monitoring of staking activities and on-chain derivatives.
As part of the agreement, Fred Cox, the founder of QIS Risk, will assume the role of global chief technology officer at CoinRoutes. His primary focus will be to spearhead technology initiatives and foster the company’s expansion within the European market.
In the press release, Cox stated, “Digital assets are at a pivotal point where institutional players need robust, enterprise-level infrastructure across the entire investment spectrum.”
According to Ian Weisberger, co-founder and CEO of CoinRoutes, the synergy created by integrating CoinRoutes’ trading execution capabilities with QIS Risk’s analytical prowess will offer a more all-encompassing solution tailored to the needs of institutional investors.
This acquisition occurs amidst growing institutional adoption of cryptocurrency trading infrastructure. Since its inception seven years ago by Weisberger and Michael Holstein, CoinRoutes has facilitated over $500 billion in executed transactions.
The company’s execution management system is designed to give clients direct control over their digital wallets and private keys while offering access to liquidity across numerous trading platforms. This approach is particularly appealing to institutions looking to minimize risks associated with counterparties.