What is an Institutional Crypto Exchange?

What is an Institutional Crypto Exchange?
What is an Institutional Crypto Exchange?

In the early years, crypto assets were perceived as “investments for fun.” Over time, Bitcoin (the leading crypto asset) surged to over $64 thousand, creating a buzz among those who did not take it seriously.

2021 was the year when crypto institutional trading gained momentum – tech companies, financial entities, funds, banks, and family firms expressed their interest in the digital assets world. This article will discuss how institutional crypto trading differentiates from retail trading and what platforms institutions use.


Institutional Crypto Trading vs Retail

In the early years of crypto, this market was filled with retail traders. Those are tech-savvy people and investors who use their own money. Institutions often act on behalf of their clients (like banks use their clients’ funds) and invest much larger amounts than retail traders.

The more you invest, the more you risk, and therefore, the higher your risk is. So, institutions impose heightened demands for a trading platform – robust security, risk management, and sophisticated tools. All these can be provided on an institutional exchange. 


Institutional Cryptocurrency Exchange – What Is It and What Can It Offer to Investors?

Unlike retail-focused exchanges, institutional crypto exchanges are tailored to handle larger trading volumes, provide advanced trading features, and offer heightened security measures. Here are the key characteristics of institutional crypto exchanges:

  • High liquidity to conduct the larger trade sizes. 
  • Advanced tools, analytics, and reporting features to meet the demands of professional traders and institutional clients.
  • Security measures, including cold storage for digital assets, multi-signature wallets, and advanced authentication protocols.
  • Compliance standards to ensure that investors operate within the legal framework of their jurisdictions.
  • Institutional accounts have features such as high liquidity trading, crypto market-making services, and customizable trading interfaces.
  • Custody services, safeguarding digital assets on behalf of their clients.

Popular examples of institutional crypto exchanges include Binance Institutional, Coinbase, Kraken, and Gemini.



As companies and funds show interest in digital assets, crypto exchanges must meet their requirements regarding trading tools, security, custody, compliance, and liquidity. Several institutional platforms meet those requirements, facilitating the maturity and growth of the crypto sector.