Kraken has launched a new colocation cross-connect service through Liquidity Connect, providing traders with faster and more stable access to digital asset exchanges.
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The service is hosted at Equinix London, a global financial data center, and is currently available to both institutional and retail customers.
Kraken’s colocation move reflects the same infrastructure arms race that has long shaped FX/CFD execution quality. Colocation and ultra-low latency access are already standard in the FX and index CFD scene, where execution quality relies on speed, stability, and predictable execution behavior.
Kraken’s rollout of similar low-latency access for cryptocurrencies shows that digital asset exchanges are converging towards the same standards of performance and transparency seen in the FX and CFD markets.
The new setup provides a direct link between Kraken’s systems and Liquidity Connect’s servers, helping to reduce latency to less than 1 millisecond. This allows traders to place orders and receive data almost instantly. This is a huge advantage for those who rely on quick market reactions.
This integration provides deterministic, ultra-low-latency connectivity via direct fiber interconnect to Liquidity Connect’s virtual private servers (VPS) and dedicated bare metal servers. According to Liquidity Connect, this setup allows traders to connect to Kraken’s trading system with sub-millisecond latency, an advantage for strategies that require precision and minimal latency.
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Dennis Miranda Cruz, head of business at Liquidity Connect, said the partnership aims to provide “speed and security that was previously reserved for large financial institutions.” He added that the company’s goal is to maintain stable, low-latency connections that improve execution quality for crypto traders.
Dennis Miranda-Cruz, Source: LinkedIn
Supports advanced trading strategies
Liquidity Connect solutions offer several operational benefits, including rapid deployment within 30 minutes, dedicated IP addresses, DDoS protection, and redundant power systems. Clients also receive 24/7 infrastructure support from Liquidity Connect engineers.
Kraken said the new service supports its continued efforts to strengthen market infrastructure and ensure fair access for participants. As the cryptocurrency market matures, exchanges are increasingly adopting institutional-grade connectivity to meet traditional financial standards.
The FX and CFD space has been offering similar colocation and low-latency setups for many years, so Kraken’s move is very much in line with what is already the norm there.
Specialist providers already host their FX trading servers in the same data centers as major FX exchanges and liquidity providers, offering ultra-low latency ‘proximity’ or co-location access. These setups connect clients directly to platforms such as Hotspot, EBS, Currenex, and Bank LP from Equinix NY4, LD4, and similar hubs.
