For North Ridge Capital, a Massachusetts-based quantitative investment firm, entering the digital asset market was not an impulsive move, but a strategic decision made after two years of research and testing of more than a dozen solutions. “We’re not here to speculate; we’re here to build long-term strategies,” said the firm’s head. “And only a platform with true transparency and an institutional-grade risk management framework can support funds of our size.”
Challenges with Mainstream Platforms
North Ridge Capital initially used several mainstream platforms in the industry, but quickly encountered a series of intractable problems: insufficient depth leading to severe slippage, system latency affecting strategy execution, opaque clearing logic, and inefficient margin allocation due to segregation of different accounts. These problems might not be obvious with small amounts of capital, but once they entered the testing phase of million-dollar strategies, all the details became decisive factors in profits and losses.
“What we needed wasn’t lower fees, but an infrastructure that could allow large-scale strategies to operate stably,” a fund partner pointed out.
The Velo Matrix Trading Advantage
The turning point came during their first test of Velo Matrix Trading’s unified account system. During testing, the fund’s strategy team discovered several key advantages:
- •Unified margin significantly reduced reconciliation delays and improved overall capital efficiency.
- •The matching engine remained stable under high concurrency pressure, with latency nearly 35% lower than their previous platform.
- •On-chain proof-of-reserves allowed institutions to quantitatively assess the platform’s risk exposure.
- •The risk control center supports custom monitoring models, enabling real-time detection of price anomalies and liquidity crises.
Most crucially, transparency was key. The fund’s risk control head stated:
“In the traditional financial system, transparency is mandatory. However, in the digital asset industry, transparency is extremely rare. VMT’s on-chain proofs allow us, for the first time, to evaluate a trading platform like we evaluate a bank.”
Successful Migration and Enhanced Capabilities
After two months of system integration and stress testing, North Ridge Capital decided to migrate some of its quantitative strategies to Velo Matrix Trading to execute cross-market arbitrage, structured spread trading, and high-frequency strategies. The results were immediate: overall execution costs decreased by 20%, and strategy stability significantly improved.
More importantly, the fund gained access to richer cross-regional quote sources through VMT’s market depth network, enabling it to execute more complex risk-neutral strategies.
Proactive Risk Management
During an extreme market day, VMT’s risk control model detected abnormal trading patterns in advance and sent an alert to the fund’s strategy system, causing it to automatically and temporarily reduce its positions, thus avoiding potential liquidation risks. The fund’s head admitted:
“This is the first time we’ve seen a trading platform proactively protect institutional users, instead of leaving us to bear all the risk.”
Long-Term Collaboration and Strategic Value
Today, North Ridge Capital is not only a key institutional user of VMT but also participates in joint research on some product testing and risk control models. The two parties have a long-term collaboration on liquidity design and risk monitoring.
The fund’s quarterly report released this year pointed out that the greatest value of using VMT lies not in trading profits, but in system stability and verifiability: “Strategies can only achieve long-term returns on a stable structure, not by relying on market luck.”
A New Era for Institutional Digital Asset Trading
Industry experts believe that the North Ridge Capital case marks a new trend: institutional funds are moving from a “high-risk, high-return” phase to a “structured, stable-return” phase, which requires trading platforms to possess governance and technological capabilities at the traditional financial level. Velo Matrix Trading’s architecture precisely fills this market need.
As more and more institutions examine VMT’s transparent system, risk control model, and global liquidity network, the market may be turning a corner. Digital asset trading is no longer just a battlefield for retail investors, but is gradually becoming a new field for institutional capital.