GoQuant has launched GoDark, a new institutional dark pool designed for digital assets, backed by firms like Copper and GSR. The platform aims to enable large trades without market impact in the volatile crypto space. It starts with spot trading and plans expansions into derivatives.
GoDark, developed by GoQuant, represents a novel infrastructure for cryptocurrency trading, filling a gap in the market for institutional dark pools. As Denis Dariotis, founder and CEO of GoQuant, explained in an interview, “There is no real institutional dark pool in crypto.” He highlighted the limitations of existing options: decentralized exchanges (DEXs), centralized exchanges (CEXs), and over-the-counter (OTC) desks. CEXs offer high liquidity but full transparency that can move prices, while OTC provides privacy at the cost of limited liquidity and higher fees. Dark pools, which account for over half of U.S. equities trading volume, bridge this by concealing large block trades to avoid spooking the market.
This concept is especially pertinent in crypto due to its high volatility and liquidity spread across venues. GoDark launches with spot cryptocurrency trading and intends to expand into perpetual futures, conventional futures, options, and other instruments. It features ultra-low-latency matching, non-custodial settlement, and execution protections such as minimum fill sizes and options to match only the best prices on lit venues, similar to the National Best Bid and Offer (NBBO) in equities.
Backed by crypto specialists Copper and GSR, GoDark also has initial users including FRNT Financial, Stillman Digital (owned by DeFi Technologies Inc.), Fasanara Capital, Capital Union Bank, Tyr Capital, Hercle, Valos, and Trillion Digital. GoQuant, which began as a market data provider for high-frequency crypto funds, has evolved into an end-to-end trading system prioritizing low latency. Complementing GoDark is GoCredit, a borrow/lend platform with a centralized matching interface tailored for banks and traditional finance hedge funds.