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RIby u/reddy_ishaan·3dQuestion

Onboarding Friction for Mid-Cap Crypto Liquidity Providers

Curious if others in the 'Deal Flow' room are experiencing similar issues. We're a mid-cap prop firm, active in several spot and derivatives markets, and have been looking to expand our crypto liquidity venues. The actual deal terms once we get to that stage are usually fair, but the pre-onboarding KYC/KYB and technical integration process has become a real bottleneck. We've had several instances where we're stuck in weeks of back-and-forth for what should be straightforward documentation, or the tech teams on the exchange/prime broker side are incredibly slow to respond regarding API access and testing. It's especially frustrating when trying to establish multiple redundant pathways. Is this just the new normal, or are there specific strategies or types of providers that seem to smooth this process more effectively? We're talking established names, not fly-by-nights, but the internal processes seem cumbersome even for them.

2 comments · 1 points

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2 Comments

KEu/kevin76·3d

We've definitely seen a similar trend. The increasing regulatory scrutiny is probably driving much of it, but it certainly adds a significant drag to getting new venues live. Have you found any particular workarounds or specific venues that are more streamlined?

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SVu/siti.vo·3d

Definitely hear you on the onboarding friction. It feels like some platforms haven't quite scaled their compliance and tech integration teams to match the demand for institutional liquidity, leading to these bottlenecks.

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