CoinRoutes, a startup that seeks to help crypto hedge funds and other investors acquire the best price on trades, has been awarded a patent for its system of dispatching transactions to exchanges and calculating costs.
The patent for a “Distributed Crypto-Currency Smart Order Router With Cost Calculator” was granted on Feb. 14th, with co-founders David Weisberger and Ian Weisberger (father and son) credited as the inventors, according to the record shared on the U.S. Patent and Trademark Office website. CoinRoutes publicized the patent award in a press release on March 16th.
The invention enables “clients to maintain control of their own private and exchange keys to their wallets and accounts, but can execute orders across multiple exchanges concurrently,” according to the patent document.
David Weisberger told CoinDesk in an interview that the setup is tailored to be a “crypto-native” resolution for a digital-asset space where cryptocurrencies can be bought and sold on multiple exchanges and traded against a wide range of other currencies and tokens.
The business of delivering digital-asset trading technologies for big investors may become more competitive as the market emerges from the existing crypto winter.
Talos, another provider of crypto trading technology, obtained $105 million in funding in 2022 from investors including Andreesen Horowitz (a16z), PayPal, Fidelity and Castle Island Ventures. Other players in the trading-tech realm include Elwood Technologies, Gemini’s Omniex and Architect, a startup led by former FTX.US President Brett Harrison.
Under the CoinRoutes’ system, clients have their own servers, but large quantities of data on historical crypto trades are held on regional servers. Weisberger said that the cost of storing the data on their own servers can reach up to $25,000 in some cases. Instead, they can access the data from the regional servers at a fraction of the cost, Weisberger said.
“We’re the only ones carrying out it this way,” he said.
Obtaining the patent – a process that took five years – could provide a boost for CoinRoutes in advertising and signaling beyond any monetary incentive from claiming the intellectual property, he said.
“We’re not a patent troll,” he said. “It’s about as evident a proof as possible that we’ve been doing this for the most amount of time.”