Developing a Spot Cryptocurrency Trading Platform for a Turkish Company
Case study

Developing a Spot Cryptocurrency Trading Platform for a Turkish Company

About the Client

The client offers a spot cryptocurrency trading platform based in Turkey. The platform allows users to immediately exchange cryptocurrencies for crypto and fiat currency–Turkish Lira–and vice versa.

The client’s business adheres to Turkish regulations: it’s registered with the Istanbul Chamber of Commerce and falls under the tax control of the Ministry of Finance.

Business Challenge

To launch the business, the client required a robust and reliable crypto trading solution where their customers can easily exchange currencies and place trades for immediate execution. The Turkish market is very competitive, so the solution had to stand out from the crowd by offering smooth and straightforward trading and simultaneous management of funds through a customer portal.

The crypto trading solution also needed a special risk management feature because the client planned on offering trading pairs with the Turkish Lira. It’s an exotic currency that calls for hedging the risk associated with traders’ orders.

Solution

The client approached Devexperts due to its track record of developing financial software solutions for Turkish companies. Devexperts have relevant expertise and crypto solutions ready to be customized for the client’s needs.

First, we developed a crypto trading platform available both on the web and as a mobile app. We equipped it with a customer portal, where the client’s traders can easily deposit and withdraw crypto and fiat currencies. For this client specifically, we integrated the customer portal with:

  1. BitGo–for the sake of custodial wallets that store client’s funds in crypto-assets and for secure processing of customers’ deposits and withdrawals on the blockchain
  2. A time-based one-time password algorithm, resulting in a two-factor authentication via Google Auth and SMS
  3. KYC/AML providers
  4. A payment gateway for processing fiat deposit transfers
  5. A Turkish SMS provider

Then, we implemented a hedge conversion feature developed specifically for the client, since they wanted to offer trading pairs with Turkish Lira (e.g. BTC/TRY), while liquidity on the external market is expressed in FX pairs relative to USD and other major currencies (e.g. BTC/USD).

The hedge conversion feature does the following:

  1. Converts the incoming market data (quotes and/or L2 ladder) from USD to TRY, using a controlled USD/TRY conversion rate.
  2. Hedges at least the “major” part of the risk by hedging client orders of BTC/TRY in pre-trade mode with BTC/USD orders to the liquidity provider (or accepting that risk by using B-Book execution here).
  3. Hedges the conversion part of the risk (or accepts this risk by “B-Booking” that conversion).

In 2020 it took us 10 months to complete the project. The client swiftly received the solution, opened the project to the public, and started onboarding customers.

Results

Devexperts delivered a spot cryptocurrency exchange platform where traders can easily exchange their currencies and place trades that are immediately executed. We equipped the platform with a custom client portal and multiple integrations, so traders get to manage their funds seamlessly and securely. This robust solution made the client a competitive player among other crypto exchanges in Turkey and allowed them to launch their business.

A month after the launch, the client reached the point of seven hundred concurrent users in peak hours, and over seven thousand users registered on the platform. The number of new customers keeps growing.