Kraken to Launch New Colocation Service for Ultra-Low Latency Trading
In an exciting development for traders, crypto exchange Kraken has announced plans to introduce a state-of-the-art colocation service in the upcoming weeks. This service is designed to provide clients with ultra-low latency trading capabilities, as highlighted in a press release issued on Monday.
Targeting clients who demand rapid execution speeds, Kraken’s new offering promises traders operating from London latency levels of under a millisecond. Shannon Kurtas, head of exchange at Kraken, emphasized the uniqueness of their approach: “Many exchanges offer colocation services, but Kraken’s approach is unique – we’re making it accessible to all partners and clients, not just institutions.”
In the fast-paced world of cryptocurrency trading, speed is crucial, particularly during periods of high volatility where even a fraction of a second can significantly impact outcomes. Low latency services leverage advanced technology to empower traders with the ability to execute orders in less than a millisecond.
Kurtas further explained the accessibility of Kraken’s colocation services: “Colocation services in crypto are typically not widely accessible. Kraken, however, has structured its offering to prioritize fairness and accessibility. Our colocation service will be available to all clients, aligning with crypto’s core values of an open, fair, and transparent marketplace.”
The exchange’s client base is diverse, including not just individual traders and institutions but also brokers, exchanges, and fintech companies that utilize Kraken’s liquidity for their own products. Kurtas noted, “These partners will also have access to colocation services once they become available.”
Clients will benefit from ultra-low latency trading through Kraken’s European data center by renting cloud computing resources from Beeks (BKS), a U.K.-listed provider of cloud computing and connectivity services. Additionally, select clients will have the opportunity to install their own physical hardware directly at Kraken’s data center and access colocation services firsthand.
As part of its strategic growth plans, the crypto firm is also contemplating the possibility of launching an initial public offering (IPO) by the first quarter of 2026. According to a report from Bloomberg earlier this month, the company believes that recent changes in the regulatory landscape in the U.S. have made a public listing a viable option.
