Building cryptocurrency exchange and crypto payment gateway with a white-label technology platform
Nowadays, cryptocurrency exchanges like Binance are doing more than $5 billion in weekly trade volume making this one of the most successful business models. At the same time launching your own digital asset trading business is a complex process, since it requires solid expertise in terms of solution architecture design, security standards and compliance, storage of digital assets and so on. So many questions are emerging. What type of platform should be chosen to fully support the company’s strategic needs for constant growth and exceeding customer expectations?
In order to start quickly, some businesses choose cloud-based software solutions (software as a service) hosted by a third-party provider. SaaS platforms are responsible for all the costs associated with building and maintaining the platform, charging the company a subscription fee. The problems arise when the enterprise needs to customize or scale the solution. The client has no control of the SaaS platform’s roadmap. They can give feedback, but getting the desired features is not guaranteed. Another option to quickly set up a cryptocurrency trading business is using open source platforms, which are free, fast to deploy and may include the basic functionality. But they are known to have considerable downsides, including weak security, poor design, insufficient quality, problems with maintenance and scalability, and so on. Finally, the free open-source platform can lead to higher cost-to-own commitments compared to other options as a dedicated team is required to deal with the support and maintenance.
The alternative option is to build a platform from scratch and tailoring it to meet a company's specific requirements. To achieve this goal, the organization will likely need to engage a third-party team of experts to design, build, test and implement the solution, and then to assist with its maintenance and scaling. For this reason, such projects are quite expensive ($300,000+) and time-consuming (9+ months). Moreover, the longer it takes to develop and modify your solution, the more upfront costs you may incur.
Velmie, as a financial organization’s technology partner, found a way to resolve the downsides of the solutions listed above. Our White-Label Cryptocurrency Exchange Platform is a ready-made, fully customizable, liquidity ready and cost-effective solution that provides companies with the capability to quickly and securely start, or level-up, their multi-asset trading business. Already used by a number of enterprise organizations and startups, it has proved to be a reliable solution that meets a financial provider’s needs and objectives.
The client is an SME European financial services company, which focuses on providing its customers with a wide range of services, including digital asset trading, a cryptocurrency payment gateway for merchants and mobile wallet and payments solution for consumers.
Previously the company used to operate on a third-party platform solution. The platform cost wasn’t high, and it had all the necessary tools to cover the client’s current needs. But, at the same time, the solution had a number of issues preventing the company from growing. For example:
The platform was inflexible and difficult to scale
Maintenance and support was problematic
It was impossible to customize
There were security issues
Therefore, the customer realized it urgently needed to substitute the existing solution with a new comprehensive platform, able to provide users with advanced cryptocurrency exchange features, as well as support company needs for growth, scalability, enhanced security, etc.
Velmie was chosen as a strategic partner for this project, due to its comprehensive technology-driven approach and proven 10 years experience in delivering software solutions to financial institutions and banks.
After the detailed business and technical review, and exploring the customer expectations, our team proposed a White Label Digital Asset Trading Platform, that we believed was capable of addressing the company-specific objectives.
The new client’s Digital Asset Trading solution was built using our platform, powered by microservices. There is no single back-end system to handle all operations and, instead, these are split into multiple services that handle all core functions. This architecture completely solves one of the core company’s business challenges - platform scaling.