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January 24, 2023

White Label Crypto Exchange Solutions

White Label Crypto Exchange Solutions

Abstract / Summary

With the constant evolution and growing acceptance of blockchain-related products, more and more platforms are being developed which allow commerce using cryptocurrencies. Nowadays, 95% of all crypto exchanges employ either centralized or decentralized models. However, building them can prove to be a challenging task since many expenses are involved even before starting implementation. This is where white label solutions come in, alleviating the need to develop anything from scratch through standard customized templates. 

White Label Crypto Exchange Solutions

What exactly is a white label solution? In general, it refers to any product or service made or altered by a third party but sold by retailers under their name and trademark. A white label crypto exchange (also known just as “white label”), which may come with a native cryptocurrency or stock, is one that has been created by a company which in turn offers it to others as a customized white template. These solutions allow businesses to get into the crypto exchange market with personalized products while saving time and money. 

Companies that offer white label solutions also provide the necessary support to keep them up-to-date and in working order, which means even less investment from consumers. Additionally, these types of crypto exchanges include features such as wallets, liquidity, risk control, affiliate systems and third-party integrations that empower the client and keep them competent in the market. As the product manufacturer focuses on building and improving the product, the seller-customer takes care of the release version.

There are key points to consider regarding buying white label crypto exchanges versus developing them from scratch. The first speeds up market entry since the customer skips the massive learning curve that comes with developing complex software. Then, because the system has previously been tested with use cases that mitigate against uncertainty, costly mistakes due to trial and error are avoided. It also saves time because the solutions come in the form of templates. Last but not least, white label crypto exchanges enable the use of shared liquidity with the provider – this is an essential aspect that consumers look for when selecting their product.

While label solutions usually come in the form of ready-to-launch platforms (take a look at how we built NDAX, Canada’s government-backed crypto exchange!). As previously mentioned, certain features are part of the package, such as protection against fraud and DDoS attacks, a payment processing system, the ability to handle banking transactions and cold wallets, technical maintenance, tools that grant the user the ability to work with a dealing desk, access to market insights, and of course, software development that includes backend and frontend components, user interface, matching engine and digital wallets. 

White Label Providers

In the preceding paragraphs, the principles, benefits and disadvantages pertaining to the use of white label crypto exchanges were discussed. The following will go over some white label exchange providers that offer specific services with a target focus, hoping to provide an overview of the most prominent brands in the market. 

AlphaPoint is considered a pioneer in the field of white label solutions. Released in 2013, the cryptographic software development company operates with a team of specialists in digital finance. Some of the most attractive features included in their white label bitcoin exchange are their liquidity solutions and products, a fully customized user-friendly interface and compatibility with several API connections to better fit in any project.

ChainUP can be considered to be in the same tier as they offer an expansive suite of "professional products", among them a validated white label exchange capable of handling up to 50,000 transactions per second. ChainUp possesses a characteristic software model that makes it a comprehensive and adaptable option for the client's needs. 

B2Broker mainly provides bitcoin solutions, such as the option to include widgets for faster exchanges. However, their system also supports WebSockets and REST API connections for better convenience. Their exchange can handle as many as 30,000 transactions per second, a number which applies to the model that doesn’t charge any extra fees, so its processing power is actually greater.

Devexperts, which have worked in finance for the last 19 years, offer software services and a unique collection of components to build visual and profitable financial tools. One of the qualities that makes them stand out is that all of their products comply with the required laws, regulations and standards even before being launched to the market. The company’s matching engine for exchanges can work with up to 500,000 transactions per sector, at least in theory – there is yet to be a use-case that has reached that number using it.  

All of the above charge an implementation cost, but there are open source alternatives in the market. OpenDAX, a hybrid software consisting of public and private libraries, is designed to build a fully-featured exchange service that facilitates the trading of digital assets, cryptocurrencies and security tokens. It’s interesting to note that, just as with the aforementioned models, OpenDAX offers API connectors for payment systems and fiat gateways, multi-level referral system support, trading bots supported through API keys and a platform for analytics, risk control and staff activity reports. 

*Theoretical estimation.

Discussion

White label solutions can provide a real opportunity for businesses and investors looking to go into the blockchain financial market, a shortcut of sorts due to their stated characteristics. However, other options, like developing an exchange from scratch or implementing open-source models, are still valid. The point of the discussion here is how to choose the platform that best suits a client’s idea. 

The innovation variable is important – where white label crypto exchanges are easier to implement, developing one from scratch allows complete customization. On the other hand, investing time and money in a constantly evolving field represents a high risk. In the selection process, the client must consider the security protocols and backend features that come with the package, such as the liquidity model since high liquidity means that one can easily change crypto assets into cash. Another factor to consider is the UI, which might be crucial for a user experience-oriented product. What’s certain is that more and more governments are implementing regulations that allow blockchain markets to participate in their economies.

In conclusion, white label crypto exchanges help businesses jump ahead when making a foray into the financial blockchain industry, skipping the chaos that technical development might bring to a team unfamiliar with the technology. Furthermore, the potential exposure that comes with expert coaching could be very important for the long-term success of the product.

Take the first step towards your business goal and contact us at info@spacedev.io to speak with an expert!

References

[1] Learn, B. (2022) What is a white-label Crypto Exchange &amp; How Does It Work?, Bybit Learn. BybitLearn. Available at: https://learn.bybit.com/bybit-cloud/what-is-white-label-crypto-exchange/ (Accessed: January 6, 2023).

[2]. Top 10 White Label Exchange Solutions in 2022: Liquidity provider: Articles. Liquidity Provider. (2022, March 25). Retrieved January 6, 2023, from https://liquidity-provider.com/articles/top-10-white-label-exchange-solutions-in-2022/ 

[3]. What is a white label Crypto Exchange? Openware Crypto Exchange Foundry. (n.d.). Retrieved January 6, 2023, from https://www.openware.com/news/articles/what-is-a-white-label-crypto-exchange 

[4]. Aaron, M. (2022) White label Cryptocurrency Exchange software - why do startups prefer this solution?, Medium. CryptoStars. Available at: https://blog.cryptostars.is/white-label-cryptocurrency-exchange-software-7ab0bc9254a7 (Accessed: January 6, 2023). 

[5]. Benefits of white label Crypto Exchange Software Development (2022) Antier Solutions. Available at: https://www.antiersolutions.com/how-to-launch-a-crypto-exchange-using-white-label-exchange-software-script/ (Accessed: January 6, 2023). 

[6]. Kazan, E., Tan, C. W., & Lim, E. T. (2014). Towards a framework of digital platform disruption: A comparative study of centralized & decentralized digital payment providers. ACIS.

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