Decentralized exchange platform tanX has achieved a significant milestone, processing over $1 billion in quarterly spot trading volume across 3 million transactions in Q2 2024. This represents a remarkable 70% increase from the previous quarter, highlighting the growing trust and confidence in decentralized trading platforms.
tanX's rapid growth in 2024 can be attributed to several factors. The platform has undergone significant product upgrades, including strategic partnerships with numerous Layer 2 scaling solutions. This expansion enables users to import their assets from a wider range of networks to trade on tanX, while maintaining swift order execution and low fees. Furthermore, tanX has implemented strategic initiatives like trading competitions and the recent launch of their loyalty program, SALT points, to encourage user engagement.
The success of spot Bitcoin exchange-traded funds (ETFs) has further underlined the institutional need for a decentralized, secure, compliant, and transparent trading infrastructure. These ETFs have collectively attracted over $30 billion in assets under management and recorded an average monthly traded volume exceeding $64 billion in Q2.
Following the collapse of FTX, crypto traders have increasingly sought decentralized, non-custodial, and safer methods for executing orders and storing their assets. This trend underscores the burgeoning interest in decentralized crypto exchanges (DEXs).
tanX, an orderbook spot DEX on Ethereum, is at the forefront of this shift. The platform offers a robust framework that ensures compliance, regulation, and transparency of assets for institutional clients through their institutional liquidity lines.
Bhavesh Praveen, co-founder and CTO at tanX, commented: "tanX addresses critical challenges faced by institutions and users in DeFi. We are incredibly proud of our achievements but even more excited about the future. We are developing numerous exciting new features that will enable traders and institutions to generate yield while maintaining full custody of their funds, mitigating risks akin to the FTX scenario. We are shaping the future of finance with our hybridized exchange engines, and I am grateful to have such an exceptional team on this journey."
The debate surrounding the advantages of DEXs over centralized exchanges (CEXs) is well-established. CEXs provide a familiar experience for investors, particularly those accustomed to equity trading on stock exchanges, and often offer a user-friendly interface. However, DEXs empower self-custody and grant full ownership of crypto assets. tanX acts as a bridge between these two worlds, pioneering a hybrid operational model. This model allows CEXs to integrate tanX's solution, offering their customers non-custodial trading while preserving the existing user experience.
Vikram, founder at Giottus Exchange, commented: "tanX brings a fresh perspective to bridging the centralized and decentralized landscape by providing high-performance trade throughput and security, especially for institutions concerned about KYC-compliant trades. In the decentralized exchange space, it doesn't get any better than tanX."
In the current environment, where numerous exchanges face increased regulatory scrutiny in the U.S. and accusations of security breaches and money laundering in France, the importance of compliance cannot be overstated. DEXs are also susceptible to misuse due to the lack of Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations.
tanX addresses this concern by offering institutions geo-fencing and KYC-routed orders, ensuring trades are executed only with verified counterparties.
Shaaran Lakshminarayanan, co-founder and CEO at tanX, commented: "At tanX, our objective is to catalyze institutional adoption in the digital asset space and attract the next $100 billion in institutional crypto inflow to the market."
tanX is a venture-backed trading platform that raised $16.5 million (at a $100 million valuation) from Pantera Capital, Elevation Capital, Starkware Ltd, Spartan Group, Goodwater Capital, Upsparks Ventures, Protofund Ventures and angel investors.