In today's global financial markets, digital assets have carved out an indispensable niche due to their efficiency and convenience. Among the various players in the digital asset ecosystem, cryptocurrency exchanges stand out for their remarkable wealth-generation potential.
For teams venturing into this industry, the first major hurdle is mastering exchange system technology—a challenge that has led many to opt for cloud-based exchange solutions. Currently, exchange technology providers fall into two categories: those with proprietary trading operations and those without. The debate over whether technology providers should engage in proprietary trading is long-standing. Should the focus be purely on technology, or does a deeper understanding of business operations lead to better service delivery? A look back at the evolution of financial technology services over the past century offers valuable insights.
Technology and Business: An Inseparable Pair
Can technology services and proprietary trading coexist? Two industry giants—Thomson Reuters and Bloomberg—have grappled with this question.
Former Reuters Group Chairman Niall FitzGerald once addressed this in an interview: "If you trace Reuters' history, you'll find that our information delivery methods have always been at the forefront of technological advancement. To me, information services and technological progress are like inseparable partners... Our unchanging mission is to deeply understand client needs, deliver superior products, and reinforce our market leadership."
Reuters' dual emphasis on technological innovation and business development continued after its 2008 merger with Thomson Corporation, forming Thomson Reuters. Today, it remains a top-three global financial information provider and a leading forex trading platform service provider.
Bloomberg mirrors this strategy. Founded in 1981, it initially focused on financial data and terminals before launching its news division in 1988. Leveraging early internet capabilities, Bloomberg revolutionized financial media by delivering real-time charts, tables, and metrics. Now a dominant force in financial information services, Bloomberg exemplifies how technology and business can synergize.
Exchange Industry Trends: Mergers and Dual Growth
The global exchange sector highlights a preference for combining business expansion with technological investment. The 20th century saw a wave of exchange mergers, creating diversified financial powerhouses. Per a 2017 Visual Capitalist report, 16 of the world’s 60 major stock exchanges exceeded $1 trillion in market cap—most of which own or invest in fintech service providers.
A prime example is Intercontinental Exchange (ICE). Starting in 2000 as an OTC energy marketplace, ICE grew via strategic acquisitions:
- 2001: Acquired London’s International Petroleum Exchange
- 2002: Purchased Enron’s tech arm, CommodityLogic
- 2007: Bought NYSE’s futures division (now ICE Futures U.S.)
- 2012: Landmark $8.2 billion NYSE Euronext acquisition
- 2016: Added OTC data provider CMA
These moves solidified ICE as a leader in listings and clearing, with technology-driven revenues once accounting for 40% of its income.
Digital Asset Sector: Hybrid Models Prevail
Leading crypto platforms also blend technology and business. In 2018, Huobi and OKX introduced white-label exchange services; by 2020, Binance and KuCoin followed. One standout is Bluehelix (formerly BHEX), which launched HBTC Exchange to refine its cloud trading system. After HBTC gained market traction, Bluehelix bifurcated in 2020:
- Bluehelix Cloud: B2B exchange solutions
- HBTC Exchange: Retail trading platform
This separation eliminated conflicts with B2B clients while showcasing Bluehelix’s technical prowess via HBTC’s success.
HBC Token: Bridging Technology and Business
HBTC’s 2020 rebrand introduced the HBC token, linking three key products:
- HBTC Exchange
- HBTC Chain
- Bluehelix Cloud
HBC’s innovative model allocates:
- 100% of HBTC’s revenue
- 80% of Bluehelix Cloud’s profits
Funds are used to buy back HBC at 10x P/E ratios daily, distributing value transparently. This aligns incentives for all stakeholders, as token appreciation benefits the entire ecosystem.
HBTC’s operational insights now empower Bluehelix clients, offering:
- Proven strategies (replicable successes)
- Preemptive solutions (addressed bottlenecks)
With 250+ global clients—including Japan’s Xtheta and Korea’s Hanbitco—Bluehelix has validated its infrastructure. Meanwhile, its upcoming "Cone" project aims to slash trade latency to <1ms, potentially reshaping crypto derivatives markets.
FAQ
Q: Can technology providers avoid conflicts with clients if they run their own exchanges?
A: Structural separation (e.g., Bluehelix/HBTC) ensures impartiality while leveraging real-world testing.
Q: How does the HBC token create value?
A: Via daily buybacks funded by platform revenues, incentivizing long-term holding.
Q: What’s the advantage of low-latency trading systems?
A: Faster execution improves arbitrage efficiency and market liquidity, crucial for derivatives.
👉 Discover how leading exchanges optimize their tech stack
Conclusion
The dichotomy between technology and business is false. Robust exchanges require technical depth, while cloud services need real-world validation. As more firms master both—like Bluehelix—the industry’s maturation accelerates.
Key Takeaways:
- Synergy wins: Top firms integrate R&D with operational insights.
- Transparency builds trust: Tokenomics like HBC align stakeholder interests.
- Adaptability is key: From ICE’s acquisitions to Bluehelix’s bifurcation, flexibility drives growth.