TanX hits USD $1 billion in quarterly trading volume

Digital and Real World Assets trading platform, tanX, has achieved a notable milestone by surpassing a billion dollars in quarterly trading volume, with Q2 2024 recording spot trading volume across three million transactions. This represents a 70% increase from the previous quarter and highlights the growing confidence in decentralized trading platforms.

Over the past year, tanX has processed 11 million transactions amounting to over USD $2 billion in trading volume. A range of factors have been credited for this growth, including various product upgrades and strategic partnerships with multiple Layer 2 scaling solutions. These upgrades have enhanced the number of networks from which users can import and trade assets on tanX, while ensuring fast order execution and low fees.

The platform has also adopted several strategic initiatives such as hosting trading competitions and launching its loyalty program, SALT points, which incentivise user participation. Another driving factor behind the platform’s success has been the introduction of spot Bitcoin exchange-traded funds (ETFs), which now manage more than USD $30 billion in assets. These ETFs achieved a record with more than USD $64 billion in average monthly traded volume in Q2 2024.

The collapse of FTX has had a significant impact on cryptocurrency trading, with traders increasingly favouring decentralized, non-custodial, and secure trading and storage options for their assets. TanX, an orderbook spot decentralized exchange (DEX) on Ethereum, is catering to this shift by providing a secure, compliant, and transparent trading infrastructure. The platform ensures compliance and regulation, making it particularly appealing to institutional clients through its institutional liquidity lines.

Bhavesh Praveen, co-founder and CTO at tanX, commented on the platform's recent achievements. “TanX solves some of the critical problems faced by both institutions and users in DeFi. I'm incredibly proud of what we've accomplished, but I'm even more excited about what the future holds. We are working on a lot of exciting new features that will help traders and institutions make yield while trading and having full custody of their funds preventing any FTX-like scenarios. We’re shaping the future of finance with our hybridized exchange engines, and I couldn’t ask for a better team to be on this journey with.”

The ongoing debate between the merits of decentralized exchanges (DEXs) and centralized exchanges (CEXs) continues. Investors, particularly those accustomed to traditional stock exchanges, often prefer the familiar interfaces of CEXs. However, DEXs are lauded for offering self-custody, allowing users to retain full ownership of their crypto. TanX positions itself as a hybrid solution, allowing CEXs to integrate its non-custodial trading solutions while maintaining existing user interfaces.

Vikram, founder at Giottus Exchange, highlighted the unique proposition tanX brings to the market. “TanX brings in a new perspective in bridging the centralized and decentralized space by delivering high performance trade throughput and security, especially for institutions who are worried about KYC complaint trades, it can’t get better than tanX in the decentralized exchange space.”

The regulatory landscape remains a critical concern for many exchanges, particularly in the U.S. and France, where operations often face scrutiny over potential breaches and money laundering allegations. DEXs, which do not adhere to Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations, can also face similar misuse risks. TanX aims to address these challenges by offering geo-fencing and KYC-routed orders for institutional clients, ensuring that trades are executed only with known counterparties.

Shaaran Lakshminarayanan, co-founder and CEO at tanX, outlined the company's overarching goal. “At tanX our goal is to catalyse the institutional adoption in the digital asset space and onboard the next USD $100 billion institutional crypto in-flow into the market.”

TanX has received significant venture capital backing, raising USD $16.5 million at a USD $100 million valuation from investors such as Pantera Capital, Elevation Capital, and others.