The HFT Checklist: How Crypto Exchanges Win Liquidity Providers in 2025In 2025, the presence of market makers (MMs) and high-frequency trading (HFT) firms in crypto has never been more critical. In traditional finance, automated trading systems now account for 70%–80% of trading volume in U.S. equity markets. The stakes are high: global crypto spot and derivatives volume surpasses $2 trillion per month, yet liquidity remains fragmented across regions and platforms.WhiteBIT, which reported an impressive $2.7 trillion in annual trading volume in 2024, largely driven by a rising number of institutional clients, illustrates how exchanges can evolve into thought leaders by meeting the exacting standards of professional liquidity providers.From colocation to credit lines, the requirements are converging with those of traditional finance—but with a crypto twist. The question for exchanges is no longer if they can onboard retail traders, but whether they can deliver what MMs and HFTs demand.1. Depth of Liquidity and Execution StabilityLiquidity is the lifeblood of electronic markets. According to BIS data, daily FX trading volumes now surpass $7.5 trillion, with spreads as low as 0.1 pips on major pairs—levels made possible by dense liquidity pools. In crypto, spreads and slippage remain more volatile, making reliable execution a differentiator.For market makers, high volumes are not just about prestige; they determine the ability to recycle risk and manage inventory efficiently. Consider Nasdaq: its average daily share volume exceeds 5 billion, enabling traders to hedge positions without destabilizing prices.WhiteBIT has made depth a strategic focus, particularly in pairs tied to its European retail and institutional base. This growing liquidity ensures smoother execution for both professional and casual traders.2. Competitive Fees, Rebates, and Credit LinesIn traditional finance, equity exchanges like CME or ICE attract liquidity by offering rebates for providing orders that add depth to the book. The same applies in crypto: execution cost optimization is a top requirement for MMs and HFTs.Moreover, credit facilities are increasingly part of the equation. In equities, prime brokers extend credit to enable high-frequency players to scale strategies without tying up balance sheet capital. In crypto, the principle is similar: by offering lines of credit, exchanges lower the opportunity cost of liquidity provision.WhiteBIT’s structure—competitive fee tiers, rebates for volume, and Portfolio Margin access (crypto-backed loans)—mirrors practices from established markets, enabling MMs to optimize costs while reducing exposure to idle capital.3. Colocation and Ultra-Low LatencyMilliseconds—or even microseconds—make the difference between profitable trades and missed opportunities. This is why NYSE’s Mahwah data center is home to a concentration of HFT servers: colocation reduces the physical distance between a trader’s algorithms and the exchange’s matching engine.In crypto, latency requirements are no less strict. As algorithmic strategies become dominant, exchanges must ensure not only low-latency execution but also predictable performance. WhiteBIT’s infrastructure has been optimized for precisely this, providing proximity hosting and connectivity solutions that meet the standards of professional HFT firms.4. Access to Unique Audiences and Retail FlowLiquidity providers don’t just look at technology—they assess audience composition. An exchange that brings unique traders to the table offers differentiated flow.In equities, the London Stock Exchange has long positioned itself as the gateway to European capital, while U.S. exchanges dominate global tech stocks. The crypto sector mirrors this division: Asian platforms concentrate Asian flow, often resulting in homogenous trading patterns.WhiteBIT’s strength lies in its European user base, which features diverse retail and institutional participation. For liquidity providers, this means exposure to less correlated order flow, improving spread capture and hedging efficiency.5. Technical Reliability and Strategy SupportFor market makers, downtime isn’t just inconvenient—it can lead to significant losses. According to an Accenture survey, 86% of financial institutions cited infrastructure reliability as their top IT priority, ahead of innovation.Exchanges must therefore invest in redundancy, failover mechanisms, and advanced APIs. For HFT firms deploying complex strategies, robust support is equally critical. The FX industry again provides a parallel: venues like EBS and Currenex have survived decades of competition thanks to their ability to guarantee uptime and performance even under stress.WhiteBIT has placed reliability and API sophistication at the core of its infrastructure, ensuring the support required for institutional-grade strategies.6. Security, Licensing, and Custody IntegrationNo professional liquidity provider will commit capital without assurance of security. Licenses and custody solutions have become the benchmark. Interestingly, for MMs and HFT firms, the risk is partly offset by leverage structures: since up to 90% of their capital may be borrowed via credit lines, their own funds are not fully at stake.Nevertheless, the reputation cost of a breach is immense. In 2024, several fintech lenders saw clients withdraw billions within hours of a cyber incident. Crypto exchanges face the same fragility of trust. Thus, partnerships with custody providers, adherence to local regulatory standards, and insurance mechanisms are no longer optional—they are mandatory.WhiteBIT’s integration with custody partners and its authorization commitments within Europe provide the assurance institutional players demand.Conclusion: WhiteBIT’s BlueprintThe landscape of 2025 shows that exchanges are competing not just for traders, but for trust, reliability, and technical excellence. Market makers and HFT firms are the bellwethers of these demands.Liquidity depth, low costs, colocation, unique audiences, robust infrastructure, and security are not isolated checkboxes—they form a holistic ecosystem. Drawing inspiration from established financial markets, WhiteBIT has aligned itself with these needs, offering an environment where professional traders can thrive.As the market matures, exchanges that follow this blueprint will not only attract liquidity providers but also elevate the entire trading experience for all participants.This article was written by FM Contributors at www.financemagnates.com.