LTP Builds Platform for Institutional Crypto Investors Amid Fragmented Liquidity

LTP is building a prime brokerage platform for institutional investors to interact with decentralized finance (DeFi) without the hassle of multiple logins, custody arrangements, and compliance reviews. The company handled $1.2 trillion in trading volume last year.

The platform aims to solve the problem of fragmented liquidity in crypto markets, which can make it difficult to move assets between different ecosystems. 'The current situation is that the market is very fragmented,' said LTP CEO Ethan Wang. 'You have liquidity at centralized exchanges, DeFi protocols, OTC desks, or banks.'

LTP's single layer platform will allow institutions to access multiple ecosystems with a single login and custody arrangement. This will make it easier for institutional investors to participate in DeFi, which is expected to be split into two distinct ecosystems: one for retail clients that does not require Know-Your-Customer (KYC) and Anti-Money Laundering (AML) checks, and another for institutional clients that requires these checks.

'I think DeFi will be splitting into different layers,' said Wang. 'One layer will have no KYC, no AML, and someone will need it, but the institutions will not have access to that. And there will be another kind of DeFi that's permissioned, with KYC and AML at the same standard as traditional finance.'

The largest asset manager in the world, BlackRock, reported roughly $14 trillion in Assets Under Management (AUM) in 2025, while the market cap of the entire crypto market is just over $3 trillion.