A Fidelity Digital Assets survey shows growing interest in digital assets among global institutional investors. Over 90% of institutions expect digital assets to become a key part of their portfolio. This shift illustrates the growing importance of crypto for institutional players. 

Despite growing institutional, investors still face significant challenges when deploying capital into crypto. 

Key Challenges Facing Institutional Crypto Traders

1. Fragmented Liquidity Across Multiple Venues Liquidity in crypto is spread thin across dozens of centralized exchanges (CEXs), decentralized exchanges (DEXs), and OTC desks. For institutional traders, this means juggling multiple accounts, managing capital and risk across multiple venues, and suboptimal execution.
2. High-Risk Custody with CEXs and BrokersUnlike traditional finance, crypto lacks established, regulated custodians, often forcing institutions to rely on centralized exchanges or brokers for custody. The FTX collapse alone showed how risky this can be, with billions lost due to counterparty failures. This makes secure, self-custodial options essential.
3. Limited Order and Execution Management In traditional markets, institutions can use tools like TWAPs and iceberg orders to optimize trade execution and limit slippage on large positions. Crypto exchanges, particularly on-chain platforms, however, offer limited options for executing such advanced strategies, leaving institutional investors exposed.
4. Limited Token Access on Institutional PlatformsMost institutional platforms offer a limited selection of tokens, cutting off access to emerging DeFi and Web3 projects. This restriction means institutions seeking new opportunities are often confined to well-established tokens, missing out on promising assets.
5. Security and Compliance Risks with On-Chain TransactionsOn public blockchains, institutions face serious risks of hacks, front-running, and compliance breaches. In 2024 alone, crypto hacks led to over $1 billion in losses, emphasizing the need for advanced security and compliance tools to safeguard assets in a challenging environment.

Terrace: Simplifying Institutional Crypto Trading

Terrace is a new all-in-one, self-custodial crypto platform that empowers institutional traders with seamless, aggregated access to liquidity across over 40 venues, including CEXs, DEXs, market makers, and OTC markets. By consolidating these fragmented sources, Terrace helps institutions find optimal prices and execute trades with enhanced efficiency, and the advanced order and execution management they expect. 

Terrace combines this best-in-class liquidity with access to over a million tokens and built in security and compliance to ensure institutional traders can trade with confidence. To compliment this advanced order and execution management system, Terrace offers comprehensive portfolio management, reporting, token screening, and self-custody to create a single, all-in-one platform for institutional investors.

About Terrace

Terrace is a non-custodial crypto trading terminal and broker with better pricing, deeper liquidity, and broader asset coverage than any CEX, DEX, or market maker. Terrace aggregates over 40 centralized and centralized exchanges, market makers, and OTC desks, and abstracts away wallets, chains and venues. We offer best price routing, advanced order types, synthetic pairs, token screening, and portfolio management so users can focus on investing. 

Explore all about Terrace: https://linktr.ee/terrace.fi 

Email: info@terrace.fi