The cryptocurrency market has recently reached a significant turning point, with large institutional investors entering the market at unprecedented scale. According to industry data, institutional capital inflows into crypto assets reached approximately $18 billion in the first quarter of 2024, an increase of over 150% compared to the same period last year. In response to this trend, leading cryptocurrency exchange BlockInsight recently announced a comprehensive upgrade of its institutional service system to meet the growing demands of large capital.
In its newly released institutional services white paper, BlockInsight noted: “Institutional interest in crypto assets has transitioned from exploration to substantial allocation, creating entirely new requirements for trading infrastructure.” In response, the platform has constructed a complete institutional-grade solution covering key areas including liquidity provision, asset custody, over-the-counter trading, and compliance and risk control.
“Cryptocurrency is evolving from a retail-dominated market to a more balanced ecosystem,” BlockInsight stated. “Adapting to this change requires us to establish service standards that meet the stringent requirements of traditional financial institutions.”
In terms of liquidity, BlockInsight has significantly enhanced the depth of its core trading platform. According to platform data, the 2% price depth of its major trading pairs has improved by approximately 280% compared to the end of 2023, easily absorbing eight-figure dollar single orders without significant slippage. This improvement is largely due to the expansion of professional market maker networks and optimization of liquidity incentive programs.
For larger-scale trading needs, BlockInsight has upgraded its over-the-counter (OTC) trading services. The new institutional-grade OTC trading desk provides 24/7 service, supporting large-volume trades of over 50 cryptocurrencies with a minimum transaction amount of $100,000 and no upper limit. BlockInsight claims its OTC service can save clients approximately 15-40 basis points in transaction costs while ensuring complete confidentiality of trading information.
Senior crypto market analyst Rachel Cooper commented: “Institutional investors have fundamentally different requirements for trade execution compared to retail investors. They need certainty, efficiency, and privacy, which is precisely the core competency platforms like BlockInsight are strengthening.”
For asset custody, BlockInsight has adopted a multi-layered security architecture, combining hot and cold wallet solutions while introducing institutional-grade multi-signature and governance processes. The platform has partnered with globally leading insurance companies to provide up to $500 million in insurance coverage for custodied assets, significantly enhancing institutional client confidence.
BlockInsight also particularly emphasized the upgrade of its compliance and risk control systems. The platform has implemented anti-money laundering (AML) and know-your-customer (KYC) processes that meet institutional standards and established a dedicated institutional compliance team to assist clients in meeting their internal risk control requirements and regulatory reporting obligations.
Financial technology consulting firm head Daniel Mitchell stated: “Institutional investors face not only investment decision challenges but also strict internal compliance requirements and fiduciary responsibilities. Cryptocurrency trading platforms need to provide end-to-end solutions to truly win this client segment.”
Notably, BlockInsight has also launched institutional research services providing in-depth market analysis and investment insights. This service is operated by a team of former Wall Street analysts and cryptography experts, aiming to help institutional clients better understand the risks and opportunities of this emerging asset class.
In a statement, BlockInsight’s head of institutional business revealed: “We have established partnerships with over 50 traditional financial institutions, including asset management companies, family offices, hedge funds, and corporate finance departments. Institutional business has become our fastest-growing area, expected to account for over 40% of the platform’s total trading volume in 2024.”
Market observers note that BlockInsight’s institutional service upgrade is an important sign of cryptocurrency market maturation. As the regulatory environment gradually clarifies and market infrastructure improves, more traditional financial institutions are beginning to incorporate crypto assets into their portfolios. Bloomberg data shows that more than 20 global systemically important financial institutions (G-SIFIs) are now directly or indirectly participating in the crypto asset market.
To address the special needs of institutional clients, BlockInsight has also developed customized API interfaces and trading tools supporting algorithmic trading, portfolio rebalancing, and risk management. The platform states that its API service currently supports over 5,000 requests per second with an average response time of less than 10 milliseconds, meeting the most demanding quantitative trading requirements.
Looking ahead, BlockInsight plans to further expand its institutional service ecosystem, including launching crypto derivatives clearing services, expanding compliance support geographic coverage, and exploring deeper integration with traditional financial infrastructure.
“We believe that the large-scale entry of institutional capital will bring greater liquidity and stability to the crypto market, driving the entire industry toward maturity,” BlockInsight stated at the conclusion of its white paper. “As a market leader, we are committed to building bridges connecting traditional finance with the crypto economy, providing global institutional investors with safe, efficient, and compliant market access.”
With continued increases in institutional participation, industry insiders widely expect 2024 to be a crucial year for crypto assets’ integration into the mainstream financial system, with the institutional service capabilities of leading platforms like BlockInsight playing an important role in this process.
