In the world of crypto trading, milliseconds of delay are enough to determine gains or losses of millions of dollars.

While most traders are still pursuing lower fees, some have already reached the top of the ecosystem. Globally, fewer than thirty institutions have access to Binance VIP9, and among them, one has chosen to step out of the traditional track, leveraging years of accumulated technological advantage to offer external services.

The name is QTX, which is currently the only technology service company founded by a Binance VIP9 team. In 2022, they took the lead by leaving FTX and within just two months, escalated from VIP1 to VIP9 in Binance's trading volume. Today, QTX is no longer just a high-frequency trading team hidden in the market but has transformed low-latency systems into infrastructure, providing them to the entire industry.

QTX's development trajectory itself is a microcosm of the evolution of high-frequency trading in crypto.

QTX: Redefining Crypto Trading Infrastructure

Founded in 2024, QTX is a technology service company focused on cryptocurrency trading infrastructure. They have packaged years of practical experience into products with the aim of providing the industry with ultra-low-latency systems and a more efficient trading environment.

QTX's core team can be described as the "Dream Team" of cryptocurrency high-frequency trading.

Co-founder and CEO, Xu Jingteng, has over 15 years of cross-border market operations and team management experience. He previously served as a senior executive at Nu Skin, managing a team of over 500 people. The other co-founder and CTO, Dai Zhiyang, is a co-founder of Taiwan's largest BBS site, PTT, and has previously worked at Yahoo, KKBOX, and served as Chief Engineer at Kronos Research. He has over 25 years of software development experience and 10 years of practical blockchain experience. They were once comrades at Quantrend Technology, jointly building the futures market maker that became a global top ten company within two years from scratch.

QTX's system stability has been validated in the industry. The trading system is entirely written in Rust language. According to Xu Jingteng, there has been no downtime in the past four to five years, even when the trading platform itself experiences downtime, the system remains operational. This stability is crucial in high-frequency trading because any interruption could lead to significant losses.

In terms of latency optimization, QTX has made a difference. The team continuously refines every detail, from cloud service nodes to data center deployments, and down to the trading platform's server room connections, with each aspect building on the other to create a significant gap.

Building on these experiences, QTX has established a TaaS (Technology as a Service) system that covers data acquisition, order execution, volume management, and cross-regional connections. For example, in terms of data services, QTX's latency in Binance's lightning quote service averages 1.66 milliseconds, far below the industry's average of 5 milliseconds; in the order execution process, the lightning order module's efficiency is three times faster than that of similar-grade trading institutions on average; in volume management, they assist clients in completing over 10 billion USDT worth of futures trading and 3 billion USDT worth of spot trading monthly.

Furthermore, QTX has also launched cross-regional dedicated lines and historical data services. The former increases cross-platform execution speeds by over 30% through low-latency networks, providing support for arbitrage and risk hedging; the latter offers market data with higher precision than traditional candlestick charts for strategy backtesting and model training.

Xu Jingteng told Odaily BlockBeats, "I hope that when clients use QTX, they can focus more on strategy development and leave the complex technology and infrastructure to QTX to handle. We have set up all low-latency networks for you, so engineers only need to interface with QTX to enjoy all the industry's lowest-latency point-to-point services in one go."

In a sense, this company is transforming the low-latency capabilities that only top trading institutions could master into an infrastructure that is available for the industry to share.

From Traditional Industries to BinanceVIP9: The Entrepreneurial Journey Full of Twists and Turns

Xu Jingteng's career began in the consumer goods and Internet industries, where he led a team of over 500 people responsible for business expansion in Greater China and Southeast Asia.

In 2020, he co-founded an AI-driven high-frequency quantitative trading company with a partner, which rose to become one of the top ten futures market makers globally within two years. Initially entering the crypto industry without a relevant background, he gradually ventured into this unfamiliar field based on trust in his partners. The low entry barrier and unique opportunities in the crypto market eventually led him to make the decision to transition.

Subsequently, the FTX Black Swan event became a crucial turning point for him, not only making him realize the critical role of technological capabilities in risk management but also propelling him towards the direction of technology services.

Odaily BlockBeats: Could you first introduce yourself? This includes your previous fields, as well as the opportunity for transformation and entrepreneurship.

Xu Jingteng: Previously, I was mainly involved in consumer goods and Internet businesses, responsible for Greater China and Southeast Asia markets, with a team size of around 500 people. Due to my role in international market expansion, I have accumulated experience in cross-border business, brand awareness, and market insights.

In 2020, I co-founded Quantrend Technology with a long-time friend I had known for over a decade, focusing on AI-driven high-frequency quantitative trading. He was a technical genius, while I was responsible for everything other than technology, including market expansion and team operations. There, we grew in just two years to become one of the top ten futures market makers globally.

However, during this process, I discovered a significant issue: high-quality trading infrastructure and technical services were extremely scarce in the market, and talent with Rust expertise was even rarer. Many teams with excellent strategy capabilities in the crypto market could not fully realize their potential due to the high technical barrier. On the other hand, some skilled teams from traditional finance struggled to showcase their abilities due to their unfamiliarity with the crypto market structure.

This was the original intention behind founding QTX, a technology service provider with years of experience holding the highest VIP level globally on Binance.

BlockBeats Interview: In your opinion, what are the differences between high-frequency trading in the crypto industry and traditional finance, besides the difference in scale?

Jingteng Xu: The entry barrier and trading costs are significant differences. In traditional finance, almost every aspect requires a license, and without the corresponding institutional resources, it is nearly impossible for the average person to engage in high-frequency trading for profit. In the cryptocurrency market, the entry barrier is much lower. For example, some people can set up a server on AWS, apply for an API interface on a trading platform, test some small programs, or even earn money using high-frequency arbitrage software they developed themselves.

In traditional finance, you need to buy hardware, lay fiber optics, do custody, and meet various compliance requirements, making it a arms race. In the cryptocurrency market, it is relatively more fair. This is also one of the initial motivations for us to later establish QTX.

BlockBeats Interview: You mentioned that the FTX incident was a turning point. Could you share a bit about the situation at that time?

Jingteng Xu: We went live on FTX in 2021, and at that time, the trading strategy performed exceptionally well with low latency and strong profitability, reaching the highest level in a short period. However, about one to two months later, we noticed some anomalies in the profit curve and order situation using our in-house developed visualization tool.

Since our team had deep technical expertise in the trading engine, we were certain that the issue was not on our end. Later, after meeting with the FTX technical team, we confirmed that there were some unfair and even cheating behaviors happening internally on their part.

So by the end of 2021, we started collecting relevant evidence, and in the first quarter of 2022, we completely exited FTX and moved to Binance to rebuild a brand-new high-frequency trading system.

BlockBeats Interview: Can you share some details about your transition to Binance?

Jingteng Xu: In the third quarter of 2022, within two months, we upgraded from VIP1 directly to VIP9, without going through any probation period, which was quite rare at that time. Actually, we were not aware of the probation process, so we went straight to VIP9 within two months. Typically, institutions start from a lower level, but due to our technical strength and trading volume, we quickly reached VIP9, attracting some attention. It is worth mentioning that in 2023, we are also one of less than ten institutions globally on Binance to achieve the highest level of futures market maker, MM5.

We had warned some clients during our time at FTX, pointing out many unreasonable aspects. However, many people at that time thought that a small team of a dozen people could not uncover the truth. It wasn't until FTX actually collapsed that they realized our judgment was correct, which also made some investors more firmly believe in us.

BlockBeats Interview: How did the FTX incident impact your business?

Jingteng Xu: For us, this was a crucial turning point. Although we withdrew early, this incident made us more acutely aware that with more trustworthy tools, many risks can actually be avoided. So we started thinking about how we could provide a more stable and reliable technical service for the entire industry. This was also a direct catalyst for the later establishment of QTX.

Technological Strength and Competitive Advantage: Seeking Moats in Change

As traditional financial institutions gradually enter the crypto market, the competition threshold for high-frequency trading is rapidly increasing. Jingteng Xu believes that despite the ample resources of large institutions, they still have limitations in flexibility, latency optimization, and other aspects.

QTX's advantage lies in being the only technology service provider that completed a full transformation from a VIP9 market-making team. The team has long been honed in top-tier low-latency environments, possessing extremely strong system stability and full-stack technical capabilities. From system language selection to cross-region latency optimization, QTX has established differentiated barriers in multiple dimensions.

At the same time, they are productizing these capabilities to create a series of services such as Lightning Market Data, Lightning Order Placement, Trading Volume Enhancement Plan, Cross-Region Dedicated Connections, and gradually expanding into areas such as Low Slippage Order Execution, Historical Data, and AI applications.

BlockBeats Interview: If an institution wants to build its own Binance VIP9-like trading environment similar to QTX, how much investment is needed?

Xu Jingteng: First, you need to become a Binance VIP9 and maintain it for at least a year. Just pouring money into it won't cut it. For example, to achieve VIP9 for a month, you need $25 billion in futures trading volume, so that's $25 billion multiplied by 12 for a year.

If the model is losing money, even if it's only losing by 0.5 basis points, it could lose tens of millions of dollars a year. If there are system issues, the principal could suffer significant losses, and if there are fee rate errors, the losses could be even higher. So, no one dares to guarantee that maintaining VIP9 status for a year can be done with just a few tens of millions of dollars.

More importantly, the market environment is always changing. The market conditions in 2022 and 2023 are completely different. To sustain VIP9, you need continuous optimization and maintenance, which is the most challenging part.

BlockBeats Interview: In your perception, is the competition threshold for high-frequency trading in the current crypto field gradually increasing or decreasing? What will the competitive landscape be like in the next two to three years? Which aspect of competition is the most intense?

Xu Jingteng: I believe that the competition threshold will definitely increase in the future because more and more traditional financial institutions are coming in with stronger resources and funding.

However, the crypto market changes very quickly and requires strong adaptability. Many excellent traders are like race car drivers. Without a good engine or infrastructure, even the strongest personal abilities may not be able to fully utilize their potential.

I think the most intense competition in the future will be on Alpha, but QTX can provide the foundational infrastructure for top-tier competitiveness, allowing trading teams to focus on strategies and Alpha without spending time building complex low-latency systems. We hope that through technology, more people can access tools that only top trading institutions have.

BlockBeats Interview: How will the entry of traditional financial institutions into this field impact the existing landscape?

Xu Jingteng: Their entry will bring about more intense competition, but it also comes with obvious disadvantages.

The uniqueness of the crypto market lies in the fact that it is not just a trading market, but also an innovation ecosystem. Understanding the trading opportunities of DeFi, NFTs, and emerging public chains requires a deep understanding of this ecosystem. Companies with a traditional financial background may need time to adapt their strategies.

For a technology service provider like us, the greatest advantage is that from day one, we have been born for the crypto market. Our technological architecture, product design, and service model have all been deeply optimized for the specific needs of the crypto market. The flexibility of a small company also allows us to maintain an extremely rapid product iteration speed. Since mid-2024, we have developed and launched a new product on average every four months. At the same time, we do not have a fixed mindset, with our client base ranging from Binance VIP9 and other top institutions to large retail traders, demonstrating a highly flexible range of applications.

BlockBeats Legal Rhythm: As low-latency competition gradually becomes more widespread, in your opinion, what capabilities will this industry shift towards competing in the future?

Xu Jingteng: I often say that there must be companies faster than QTX in the world, but QTX is the only service on the market that can be rented as the fastest. The reason is simple: other companies that are perennial VIP9s will not come out to do this. We are the only team that has opened up top-tier infrastructure to the outside world.

If in the future everyone converges on latency conditions, competition will shift towards dimensions such as strategy, ecosystem, and capital volume. It is difficult to achieve complete uniformity in latency optimization, but even if it is achieved, the competition will also focus on these aspects.

BlockBeats Legal Rhythm: You just mentioned that other VIP9 companies will not come out to do technical services. Can you explain this specifically?

Xu Jingteng: There are only about two dozen companies globally that are perennially ranked as VIP9. Most of them are large institutions that typically operate independently in different departments, with one department specializing in Alpha and another in Infra, without much communication between them, making it difficult to take out the entire set of technology for services. Moreover, their resources and focus are all on trading business. For them, maintaining a competitive advantage is more important than opening up technology.

But we are different. The entire team has grown up in the most hectic top-tier market-making environment over the past few years. We have honed both high-frequency and medium-to-low-frequency strategies. We are the most knowledgeable technology service provider for trading teams. Understanding both trading logic and underlying architecture, being able to productize this experience, and possessing the ability to combine technical depth with productized thinking are the reasons others find it difficult to compete with us.

Rhythm BlockBeats: Could you please introduce the core technological advantages of QTX in detail?

Xu Jingteng: There are two core points.

The first is system stability. Our trading system is entirely written in Rust language and has never crashed in the past. The highly modularized code makes development both flexible and efficient, while also making complex systems easier to maintain and use.

The second is a deep understanding of the cryptocurrency market over the years. We have accumulated years of practical experience in the crypto market, covering various strategic areas such as market-making, CTA, Long/Short, and high-frequency market-making strategies. From millisecond-level high-frequency prediction to daily trend assessment, and to the ultimate pursuit of latency optimization, we have gone through complete validation and iteration.

Rhythm BlockBeats: Could you please introduce QTX's Lightning Market Data Service specifically?

Xu Jingteng: This is an ultra-low-latency market data flow solution. The average latency from Binance's event time to our local system is only 1.66 milliseconds, while the industry average is about 5 milliseconds.

For high-frequency trading, such a difference is crucial. After clients connect, they all notice a significant improvement in response speed.

Rhythm BlockBeats: Apart from Lightning Market Data, what other core products does QTX have?

Xu Jingteng: We also have Lightning Order Placement Service, which, through a unique optimal trading environment, reduces order execution latency compared to the internal modules of the trading platform. During market volatility, our Lightning Order Placement provides an average latency advantage three times faster than similarly Binance VIP-level trading institutions.

Secondly, there is a trading volume enhancement plan to help clients achieve or maintain high VIP levels and reduce trading fees. Currently, we have helped clients complete over 10 billion USDT futures trading volume monthly, as well as 3 billion USDT spot trading volume.

We also offer cross-region dedicated line services, where the cross-exchange speed can be increased by over 30% through low-latency cross-region dedicated lines.

Rhythm BlockBeats: Could you share the improvements these products have brought to clients in practical scenarios?

Xu Jingteng: For example, Flash Order is a service we have publicly disclosed the speed of. The average delay from Binance's matching engine to our system is 1.66 milliseconds. If customers feel this speed is fast enough, they will come to us.

Flash Order is particularly effective when the market is highly volatile. For example, when Bitcoin or Ethereum experiences a sudden large fluctuation, trading platforms often experience "traffic jams," and delays could reach several hundred milliseconds. However, our interface can still maintain a speed three times faster than the industry average in such situations. The key difference lies in whether you can successfully cancel or place an order at a critical moment. Customers have also provided feedback that our advantage is very significant during extreme market conditions.

BlockBeats: What is QTX's historical data service like?

Xu Jingteng: For quantitative trading teams, data is the foundation of their strategies, but handling it is often the most complex and laborious task. Our historical data comes from the lowest latency market source at the time and is meticulously processed to ensure the highest accuracy and reliability.

For example, we directly collect data from colocation or matching points, retain original low-latency data with timestamp, and provide it after data validation and integrity checks. The data precision is finer than that of other companies on the market. We provide tick-by-tick trading data, not just candlestick data, with higher data quality, much like "4K resolution." This is crucial for high-frequency trading users when conducting strategy backtesting.

In quantitative trading, historical data is essential. Since it must be purchased, why not choose the highest-quality data that can support all strategies?

BlockBeats: How do you view the application of AI in high-frequency trading?

Xu Jingteng: I believe AI is an inevitable trend, and the reason is simple. Without AI, your information processing is limited, and we have been using AI from day one, ensuring that we always stay ahead.

In high-frequency trading, everyone is comparing speed and accuracy. QTX can help with speed, but accuracy is like a competition, and whoever can win depends on individual capabilities.

AI is mainly applied in two areas here: trade volume optimization and low slippage execution. For example, when executing large orders, AI can help predict market trends, thereby reducing the impact costs. Our low slippage execution product launched in the third quarter is supported by AI algorithms.

For example, if you are providing liquidity on Binance Futures, given the current market conditions, someone around VIP5 level can obtain MM1 market maker status, while VIP9 can obtain MM4 market maker status, with a fee rate difference of 0.4 basis points. By using our low-slippage execution service, it is equivalent to having the qualification of VIP5 and being able to achieve close to the cost advantage of VIP9. In the long run, the cost savings are significant. This is the practical application of AI in high-frequency trading.

Client-to-Investor: Unique Validation of the Business Model

As QTX's technological capabilities gradually open up to the public, their client base is also rapidly expanding. From top-tier quant funds to market makers, and even family offices, all are enhancing their competitiveness by leasing QTX's low-latency and stable system.

At the same time, compliance issues, use of funds, and the launch of new features in the future are also critical focuses of external attention. Xu Jingteng shared specific portraits of clients in an interview, as well as QTX's two to three-year roadmap.

BlockBeats Interviewer: What is your client portrait? What are their most pressing needs?

Xu Jingteng: Our client base is quite clear. Taking Binance as an example, among clients below VIP6, there are many excellent traders who have a barrier in terms of technology and latency, and we can provide assistance. Additionally, we also have many clients in VIP7, 8, 9. They may be strong in futures but need optimization in spot trading, or they want us to help them improve their latency.

Recently, we have also received demands from some top high-frequency traditional quant institutions in the Greater China region, asking us to optimize their internal latency. Although they have internal teams working on it, the efficiency is too slow, so they asked us to conduct A/B testing and pay a fee for our assistance. Because they know that spending a year figuring it out on their own might make the advantage disappear. By leasing our service, they can immediately save time and focus on strategy and Alpha research.

Overall, our clients are mainly divided into three categories:

The first category is quant funds. They have strategies and alpha but lack a high-quality execution environment. They can validate and amplify the strategy's effect immediately by using our service;

The second category is market makers. They need stable APIs for multiple trading platforms and faster interfaces, which we can provide;

The third category is large arbitrage institutions, family offices, or financial institutions. They need better rates and execution environments, and we can also provide relevant services.

Rhythm BlockBeats: Apart from standardized services, do you also provide custom technical development for clients?

Xu Jingteng: Yes, we do. We often discuss with clients their overall trading strategy, such as whether they are engaged in cross-exchange arbitrage, or which part, spot, or futures, has a large volume. Then we help them customize tools to optimize the trading environment.

The customization part is actually more critical in the early stage, but once the tools are delivered, they can use them on their own. We mostly provide underlying engines and architecture to allow them to run strategies on top of them.

Rhythm BlockBeats: How do you view the future impact of regulations on your business?

Xu Jingteng: Actually, compliance has little impact on us. Because we are not directly involved in trading, we provide technical tools. How clients trade is their own business. Logically, when they decide to purchase our service, they have already addressed the compliance issue.

Some of our clients are even top-tier quant institutions and Binance VIP9, who have also invested in us because they feel our product is neutral and carries little compliance risk. Some traditional VCs are also willing to invest in us based on the same judgment.

Rhythm BlockBeats: Could you summarize QTX's core competencies and future plans?

Xu Jingteng: Our advantages mainly come from several aspects:

First, we have a trading background, a deep understanding of technology, and know what the real pain points are;

Second, we have accumulated expertise in execution and market insights, enabling us to quickly capture customer needs;

Third, we are not just system integrators but design systems from the ground up for the crypto market, giving us unique advantages in latency, stability, and scalability.

In the future, we hope to provide not just a single platform but a complete architecture for clients. Subscribing to QTX's service is like subscribing to a top-tier low-latency team, allowing clients to focus solely on strategy.

Rhythm BlockBeats: After the financing, where will the funds be invested?

Justin Xu: Most of the funds will still be invested in technological research and development, with a small portion used for brand expansion. Technical development has always been our core focus.

One of the most important directions is Low Slippage Order Execution, which can help clients save a significant amount of costs. They can enjoy lower execution fees without needing to maintain VIP status.

Secondly, we will develop some visualization systems to allow clients to more intuitively see their trading status in the market, better manage funds and strategies. Our positioning has always been to provide tools, not to replace traders' judgments, but to help them better execute in the market.

Many of the investors in this round of financing are actually our clients. They were originally VIP7, 8, 9 users of Binance, and after using our services, they decided to invest directly in us.

This is a great affirmation for us and also indicates that our product does address industry pain points. In the future, we will continue to modularize our products, such as visualization tools and low slippage execution systems, so that more traders can leverage these capabilities.

BlockBeats Interviewer: You mentioned that many investors are also your clients?

Justin Xu: Yes, many of our investors are actually our clients. They first used our services, found the results very effective, and then decided to invest in us. This is actually the best validation of our product and service.

For example, we have a client who, after using our Lightning Market Data service, saw a significant improvement in trading performance, and then decided to invest in us. This model has made our financing process very natural because investors have a deep understanding of our business model and technical capabilities.

BlockBeats Interviewer: What are the benefits of this model for company development?

Justin Xu: First of all, this model makes our product development more targeted. Because our investors are our users, their needs are market needs. We don't need to guess what the market needs; our clients will tell us directly.

Secondly, this model makes our client relationships more stable. As shareholders, investors want the company to succeed, so they are more willing to use our services long-term and help us refer new clients.

Finally, this model made our fundraising easier. Because investors understood our business model well, they were aware of our technical capabilities and market prospects, so the fundraising process went smoothly.

BlockBeats Interview: How large is QTX's customer base currently?

Jingteng Xu: The clients we currently serve include some well-known trading institutions and individual traders. Due to confidentiality agreements, I cannot disclose specific client names, but I can say that our clients have high VIP levels on Binance.

Our services help clients generate over 10 billion USDT in monthly futures trading volume and 3 billion USDT in spot trading volume. This number reflects the scale of our services and the quality of our clients.

BlockBeats Interview: How do you view the future of the cryptocurrency high-frequency trading industry?

Jingteng Xu: I believe this industry still has significant room for growth. As the cryptocurrency market continues to mature, the demand for professional technical services will increase.

The entry of traditional financial institutions will bring more competition but also expand the market. We believe that technological advantage is the most critical moat, and as long as we can maintain technological leadership, we can establish a presence in this market.

Our goal is to become an infrastructure provider for this industry, much like AWS in the field of cloud computing. Through our technical services, we hope to enable more traders to participate in high-frequency trading and drive the development of the entire industry.

BlockBeats Interview: Finally, what advice do you have for newcomers who want to enter this industry?

Jingteng Xu: I think the most important thing is to have a solid technical foundation. This industry has high technical requirements, and if you lack sufficient technical skills, it will be challenging to survive in this market. High-frequency trading is not a get-rich-quick industry; it requires long-term accumulation and continuous learning.

Lastly, choose good partners and service providers. In this industry, a good technical service provider can make your efforts twice as effective.

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