Crypto exchange Kraken is set to introduce a new colocation service in the upcoming weeks, designed to provide clients with ultra-low latency trading, the company announced in a press release on Monday.
The service targets customers who require rapid execution, with traders based in London expecting latency to be below one millisecond.
“Though many exchanges offer colocation services, Kraken’s method stands out – we are making it available to all partners and clients, not just institutional ones,” stated Shannon Kurtas, head of exchange at Kraken, in the announcement.
In the fast-paced world of trading, particularly in volatile markets like cryptocurrency, even a tiny delay can be critical. Low latency services utilize advanced technology to give traders a competitive advantage by allowing them to execute orders in less than a millisecond.
“Colocation services in the crypto space are usually not widely accessible,” Kurtas noted in an email. “However, Kraken has designed its service to emphasize fairness and inclusivity,” adding that “this colocation service will be open to all clients, resonating with the core principles of an open, fair, and transparent market.”
“In addition to individual and institutional traders using Kraken directly, we collaborate with brokers, exchanges, and fintech firms that tap into our liquidity for their own offerings,” Kurtas explained, mentioning that “these partners will also be granted access to colocation services once they are launched.”
Clients will be able to access ultra-low latency trading from Kraken’s European data center by leasing cloud computing resources from Beeks (BKS), a cloud and connectivity provider listed in the U.K.
Selected clients will have the option to set up physical hardware in Kraken’s data center and directly utilize colocation services, as informed by the exchange.
Looking ahead, the company is contemplating a potential initial public offering (IPO) by the first quarter of 2026. They believe that the regulatory landscape in the U.S. has evolved enough to make a public listing achievable, according to reports earlier this month from sources close to the situation.