GoDark, a dedicated institutional dark pool for digital assets, is backed by renowned crypto custody and trading experts like Copper and GSR, and is launching a new service aimed at executing large orders discreetly.
Alongside GSR and Copper, the platform boasts substantial support from notable users including FRNT Financial (FRNT), Stillman Digital—owned by DeFi Technologies Inc. (DEFT), Fasanara Capital, Capital Union Bank, Tyr Capital, Hercle, Valos, and Trillion Digital.
Over 50% of U.S. equities trading happens in dark pools for a crucial reason: large institutions looking to acquire or liquidate significant volumes of assets aim to avoid unsettling the market. Dark pools facilitate this by balancing the liquidity of centralized exchanges (CEX) with the privacy of over-the-counter (OTC) transactions.
Currently, this kind of infrastructure is significantly more advanced than what’s available in the crypto space, according to Denis Dariotis, founder and CEO of GoQuant, the company behind the GoDark service.
“There’s no true institutional dark pool in crypto,” Dariotis stated in an interview. “We have decentralized exchanges (DEXs), centralized exchanges, and OTC desks, but there isn’t a genuine platform for off-chain trading with the full benefits of the underlying spot asset.”
The CEX advantage lies in its transparency and ample liquidity, although this can inadvertently impact market prices. On the other hand, OTC desks may lack transparency, leading to wider spreads and higher fees due to constrained liquidity. Dark pools offer a middle ground, combining the best attributes of both.
Implementing the dark pool model in crypto is particularly crucial due to the extreme volatility of digital assets and the fragmented liquidity across various trading platforms, Dariotis emphasized.
GoQuant initially started as a market data provider for mid- to high-frequency crypto-focused funds. From that foundation, Dariotis and his team developed a comprehensive trading system that includes market data and execution, prioritizing low latency.
In addition to the GoDark service, Dariotis recently unveiled GoCredit, a lending and borrowing platform that features a centralized matching interface, targeting banks, traditional finance hedge funds, and similar enterprises.
At launch, GoDark will provide spot cryptocurrency trading and aims to expand into perpetual futures, standard futures, options, and more financial instruments.
GoDark promises ultra-low latency matching and non-custodial settlement, along with execution safeguards, including minimum fill sizes and the choice to execute orders only if they align with the best prices available across different “lit” venues, resembling the National Best Bid and Offer (NBBO) standards in U.S. equities.
