Simplifying Profits: Leveraging White Label Solutions to Build Digital Asset Exchanges

Aspect	Description
Centralized Digital Asset Exchanges	Essential platforms for digital asset trading with significant daily volumes.
White Label Solutions by BTSE	Framework for quick and efficient launch of customized exchange platforms.
Multiple Forms of Savings	Reduced development time and costs, facilitating rapid market entry and user base growth.
Off-the-Shelf Feature Bundle	Including user authorization, built-in wallets, trading engines, and detailed dashboards.
Signature Customizations	Customizable elements to enhance the uniqueness of the exchange platform.
Choosing a White Label Service Provider	Selecting providers like BTSE for flexibility, rapid deployment, and comprehensive support.

In mid-June 2023, the 693 centralized digital asset exchanges tracked by CoinGecko were racking up a total trading volume of roughly US$70 billion each day. Digital asset exchanges are a crucial on-ramp for the digital asset curious, as well as important platforms for more experienced traders. They’re also used by institutions to manage their on-chain assets.

Often the first touchpoint for traders who are dipping their toes in the waters of digital assets, centralized exchanges are popular because they simplify the investment process and allow users to manage their digital assets and fiat money holdings in one portal. This convenience and user-friendliness have made centralized exchanges the cornerstone of digital asset investment.

Since exchanges are essential service providers, there is significant interest in developing new, streamlined platforms that give users the best possible trading experience. But it isn’t always necessary to build an exchange from scratch. White label solution providers such as BTSE can kick-start the process and provide the framework for indispensable features, making it possible to launch an exchange speedily and reach users faster.

Multiple Forms of Savings

Digital asset projects are known for their adaptability and flexibility, keeping pace with rapidly advancing technologies and applications. While the core functions of exchanges remain constant, there is always space for improving processes behind exchange’s features. This is where using white label solutions yields their greatest advantage.
The most significant consequence of utilizing a customizable, pre-built solution is that development time is significantly reduced — shrinking weeks or even months of work to be completed in mere days. This means development costs are lowered as well. Additionally, launching earlier provides the opportunity to build a user base and refine the exchange’s features based on their feedback, recommendations, and requests.

Off-the-Shelf Feature Bundle

White label solutions include a variety of core features that any exchange would need.
These include user authorization and verification tools, which ensure the integrity of the exchange’s user base and minimize the chance of malicious actors using the exchange to commit fraudulent or illegal transactions. These tools may include a single sign-on (SSO) authentication method, multi-factor authentication (MFA), as well as passwordless and biometric authentication.

End users will also expect exchanges to have built-in wallets to store digital assets and perform transactions such as fiat-digital asset or digital asset to digital asset swaps. Additionally, any white label exchange is powered by a trading engine that controls all digital asset-related transactions such as matching offers, providing real-time prices, and creating price charts for users.

Behind these transactions, an order book automatically provides information about open trades to buy or sell digital assets, and users should be able to access this information and more via dedicated dashboards that provide a full view of their holdings and trading conditions.

Other useful features provided by white label developers include notifications, bank card integration, and exchange security measures. Together, the mentioned features shape a trading environment that is familiar to most end users, giving them a digital asset trading experience that mirrors the functionalities they would benefit from on traditional trading portals.

Signature Customizations

Beyond the minimum viable product that can be offered as an exchange, there are tweaks and additions that can be made to highlight the uniqueness of a platform over its competitors. This may be a sign-up process that is streamlined for minimal friction, or an onboarding process that is memorable and informative.

In any case, exchanges that are built from scratch are naturally 100% customizable, while white label solutions are typically less flexible. But the advantage of pre-built solutions is a demonstrable track record that indicates their features are reliable, making them safe, secure, and dependable.

This is paired with dedicated tech support that will help the new exchange ensure stable and reliable service for end users — a particularly important element when these loyal early customers help shape the exchange’s future direction.

Identifying a White Label Service Provider

The digital asset space is a growing industry. It currently has a global market capitalization that’s more than US$1.2 trillion; at its peak in November 2021, that figure neared US$3 trillion.

There is massive opportunity for a successful exchange to tap into a widening user base as digital assets become more mainstream. BTSE’s white label solution provides the option to customize a new exchange platform to fit specific client needs, yielding a high degree of flexibility along with quick setup, dedicated tech support, and an intuitive, user-friendly interface design.

To find out more about BTSE’s enterprise solutions, please book a demo or chat with our experts here.