Regulated crypto platforms in Europe are now starting to compete for the best trade execution, not just following regulations. This change marks a new phase in the development of the region's trading infrastructure.

Bitpanda's platform Fusion is an example. The platform aggregates order books from 12 global trading venues and provides traders access to consolidated liquidity.

Europe's fragmented liquidity problems

For several years, European traders faced a difficult choice. Regulated platforms offered secure custody and legal clarity, but rarely the same deep order books as global platforms outside of Europe's regulations.

The problem increased when several of the world's deepest liquidity pools still lay outside Europe's oversight. This led many active traders to choose offshore exchanges where the order books were deeper, resulting in narrower spreads and better executions.

The problem was not a lack of platforms. It was about what kind of infrastructure the platforms built. Most focused on accessibility, onboarding, and regulatory compliance.

But liquidity in cryptocurrency trading is still fragmented in Europe. The market depth varies depending on asset, trading venue, and time of day. No single exchange consistently leads across all trading pairs.

For active traders, this fragmentation creates practical problems. They often have to spread their capital across multiple platforms and move funds frequently to access liquidity. This leads to inefficiencies and increased costs, such as losses from repeated conversions between fiat and crypto.

Follow us on X for the latest news directly

How Bitpanda Fusion fits in

Now it is starting to change. Regulated European platforms are creating products focused on trade execution. Bitpanda Fusion connects 12 global trading venues.

For each trading pair, liquidity is dynamically sourced from multiple exchanges, usually between two and nine depending on market conditions.

The model allows traders to utilize multiple liquidity pools simultaneously, including the deep global markets outside of Europe. This improves efficiency, without traders needing to manually move funds between platforms.

”Fusion is for traders who are already working with higher complexity, seeking regulatory security and want to keep their money in a safe place: those who trade high volumes, are accustomed to order books and advanced order types, and want to optimize execution, not simplicity,” writes Bitpanda in its blog.

The platform supports over 2,000 trading pairs. It offers limit, stop-limit, and take-profit orders as well as built-in TradingView charts.

Fusion shows a greater change in the European market, moving away from fragmented trading venues to more integrated systems with consolidated liquidity.

Subscribe to our YouTube channel to see leaders and journalists provide expert tips