CoinRoutes, one of the digital asset industry’s original algorithmic trading platforms, announced Thursday its fourth-generation enterprise trading solution has been awarded a U.S. patent (Patent No.: US 11,580,600 B2) for the core technology architecture powering its Distributed Crypto-Currency Smart Order Router with Cost Calculator. The patent protects CoinRoutes’ distributed smart order routing technology, resulting in the most cost-effective and secure trading solution commercially available by combatting exchange arbitrage and giving traders complete control of their assets.
It is exceedingly difficult for traders to navigate the cryptocurrency market structure, as it is highly fragmented and not amenable to the unique trading characteristics of digital assets. A multitude of exchanges list crypto assets at different prices, and because most of those exchanges require traders to use exchange-specific digital wallets, many crypto market participants have to trade on one exchange at a time. This results in the inability to execute trades at the most opportune time, factoring in asset price, trading fees, and counterparty risk. CoinRoutes’ invention of a distributed smart order router, which allows clients to keep control of their private wallet and keys, empowers users to execute orders across multiple venues simultaneously and securely.
“Unfortunately for crypto traders, the market is dominated by platforms and algorithms that were designed for traditional finance and adapted to try and fit the emerging digital asset space, leading to subpar performance and decreased security,” said Ian Weisberger, CTO and co-founder of CoinRoutes.
“When Ian designed the Distributed Smart Order Router on a napkin in 2017, I knew we were on to something. The architecture enables CoinRoutes to deliver a secure enterprise solution to each client, at a much lower cost than our competition without cutting corners on the terabytes of crypto market data that inform the decision-making of our algorithms,” said Dave Weisberger, CEO and co-founder of CoinRoutes. “The award of our patent is recognition that CoinRoutes is providing our clients with a secure and cost-effective tool that wasn’t previously available to digital asset traders.”
There are three distinct parts of the CoinRoutes architecture: the Market Data Ticker Plant, Decision Engine, and Smart Order Router. When a client submits an order via CoinRoutes user interface or API, the Decision Engine–which subscribes to a consolidated data feed of exchange bids and offers–calculates a target price (CoinRoutes’ proprietary fair value model) to determine the optimal size and timing of orders to send to various venues.
In addition to providing users with the most efficient trades across exchanges for a fraction of the cost, the proprietary CoinRoutes platform offers the most secure trading experience on the market by allowing customers to maintain full control of their wallet and exchange keys.
“As the old saying goes, ‘not your keys, not your crypto’,” said Jon McLachlan, Chief Security Officer at CoinRoutes. “While most people think of that adage in the context of an individual’s crypto assets, the same applies to enterprise trading platforms. With the Distributed Smart Order Router, we’ve built the market-leading multi-exchange trading platform that allows you to retain full ownership and control over all of your assets.”
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