Kraken Launches Colocation Service for Ultra-Low Latency Trading

Kraken, a prominent crypto exchange, has announced plans to launch a new colocation service in the coming weeks. This service is designed to provide clients with ultra-low latency trading, a critical advantage in the fast-paced and volatile crypto market. The service will be particularly beneficial for traders operating out of London, who can expect latency of under a millisecond.

Shannon Kurtas, head of exchange at Kraken, emphasized the unique approach of the exchange's colocation service. Unlike many other exchanges that offer such services only to institutional clients, Kraken aims to make it accessible to all partners and clients. This aligns with the core values of the crypto industry, which prioritizes fairness, accessibility, and transparency.

Kraken's colocation service will leverage sophisticated technology to enable traders to execute orders in less than a millisecond. This speed is crucial in the crypto market, where even a fraction of a second can significantly impact trading outcomes. The service will be available to a wide range of clients, including individuals, institutions, brokers, exchanges, and fintech companies that use Kraken's liquidity for their own products.

Clients will have access to ultra-low latency trading from Kraken's European data center by renting cloud compute from Beeks, a cloud computing and connectivity provider. Additionally, select clients will have the option to install physical hardware at Kraken’s data center, allowing them to access colocation services directly. This flexibility ensures that clients can choose the method that best suits their trading needs and infrastructure.

Kraken's decision to offer a colocation service reflects its commitment to providing cutting-edge technology and services to its clients. By prioritizing fairness and accessibility, Kraken aims to set a new standard in the crypto industry, where speed and efficiency are paramount. This move is expected to enhance the trading experience for Kraken's clients, giving them a competitive edge in the market.