October 6, 2025
This content presents possibilities and conditions of Liquidity-as-a-Service (LaaS), without promising performance on spreads, slippage, or execution. Evaluate risks, regulatory and technical impacts before making decisions.
O que é Liquidity as a Service e como funciona na prática?
Liquidity as a Service (LaaS) is a business model that offers digital liquidity solutions for companies that need quick and efficient access to financial resources. This service is especially relevant for companies operating in the digital financial market, such as cryptocurrency exchanges, fintechs, and investment platforms.
How does LaaS work in practice?
The advancement of many companies demonstrates how LaaS can be successfully implemented. In the third quarter of 2025, Liquidity Services Inc. reported an adjusted earnings per share (EPS) of $0.34, exceeding expectations of $0.33. The revenue reached $119.9 million, above the forecast of $88.7 million, and the gross merchandise value (GMV) reached $413 million, a 9% increase from the previous year.
These results indicate that by providing efficient and scalable liquidity solutions, companies can improve their financial performance and better meet their clients' needs.
Practical applications of LaaS
Cryptocurrency exchanges: Can integrate LaaS APIs to offer real-time liquidity, improving user experience and competitiveness in the market.
Fintechs: Use LaaS to offer innovative financial services, such as instant loans and automated investments, without the need to maintain large capital reserves.
Investment platforms: Implement LaaS to facilitate trading of digital assets, providing investors with quick and secure access to markets.
Informational content. Does not constitute an offer of securities, exchange services, or payment. Past performance does not guarantee future results. Azify operates directly or through duly authorized partners, as per the scope. Assess risks, accounting and tax impacts with your advisors.
How does LaaS differ from internal liquidity solutions?
The distinction between internal liquidity solutions and the model LaaS (Liquidity-as-a-Service) is fundamental to understanding how exchanges and desks can optimize their operations and offer better conditions to their users.
Internal liquidity solutions require the exchange or desk to maintain its own capital in each trading pair. This means that to offer a pair like BTC/USDT, the platform needs to have a significant amount of BTC and USDT. This approach grants operational autonomy, but also imposes significant challenges:
High counterparty risk: The platform assumes full responsibility for the transactions made, which can be risky in volatile markets.
Exposure to slippage: In large volume orders, execution may occur at prices different from expected, negatively impacting the outcome of the trade.
High capital requirement: Maintaining sufficient liquidity for various trading pairs demands a considerable capital, which can be costly.
Operational complexity: Managing internal liquidity requires robust systems and specialized teams, increasing complexity and operational costs.
The LaaS model offers a strategic alternative by allowing exchanges and desks to access external liquidity pools, managed by specialized providers. This provides several benefits:
Reduction of counterparty risk: By transferring responsibility to the liquidity provider, the platform reduces its exposure to operational risks.
Minimization of slippage: With access to deep liquidity pools, it is possible to execute large volume orders with less price impact, ensuring more stable prices.
Capital optimization: The need to maintain large asset reserves is reduced, allowing the platform to allocate resources more efficiently.
Regulatory support and compliance: LaaS providers often offer support in compliance with local regulations, facilitating operation within legal parameters.
Advanced technological infrastructure: Integration with high-performance APIs and continuous monitoring allows for a more agile and secure operation.
While internal solutions offer total control, they also require greater investment and present high risks. The LaaS model, on the other hand, allows exchanges and desks to focus on their core competencies, delegating liquidity management to specialists and thus optimizing their operations and offering better conditions to users.
Informational content. Does not constitute an offer of securities, exchange or payment services. Past performance does not guarantee future results. Azify operates directly or through duly authorized partners, as per the scope. Evaluate risks, accounting and tax impacts with your advisors.
What are the main benefits of LaaS for fintechs?
The Liquidity as a Service (LaaS) offers a number of strategic advantages for fintechs, allowing them to scale financial operations quickly, securely, and in a regulated manner. Among the main benefits are:
1. Quick and efficient access to liquidity
With LaaS, fintechs can access immediate liquidity without needing to maintain large capital reserves. This means that it is possible to process payments, loans, and customer transactions continuously, ensuring that critical operations are never halted.
2. Reduction of operational and regulatory risks
By working with regulated LaaS providers, fintechs reduce risks related to compliance, legal conformity, and financial security. Auditable services, transaction monitoring, and automated reporting provide robust evidence of compliance for regulatory bodies.
Benefit: greater legal security and transparency in operations, increasing the confidence of investors and customers.
3. Scalability and agility in innovation
LaaS allows fintechs to launch new products and services quickly, without needing to invest in their own banking infrastructure. This includes solutions such as digital accounts, instant payments, trading of digital assets, and other innovative financial functionalities.
For example, a fintech that wants to offer crypto asset trading to customers can integrate LaaS APIs, providing instant liquidity without internally managing large volumes of assets.
4. Operational efficiency through automation
LaaS platforms offer automation of critical processes, including:
Identity verification (KYC)
Transaction monitoring (AML/CFT)
Automated payments and settlements
Reporting and audit trails
This automation reduces manual errors, saves time, and ensures that all operations are documented and auditable.
What are the benefits of LaaS for desks?
The desks (Over-the-Counter) are specialized platforms for executing high-volume cryptocurrency transactions, primarily serving institutional investors and high-net-worth clients. Integrating Liquidity-as-a-Service (LaaS) into these operations offers a range of strategic, operational, and compliance advantages.
Efficient execution of large volumes
By connecting to external liquidity pools, the desks can split significant orders among multiple providers, avoiding public exposure of large transactions. This reduces the risk of slippage — the difference between the expected price and the actual execution price of an order — and maintains price stability in the market. This approach is especially crucial in cryptocurrency markets, where volatility can be exacerbated by large orders.
Optimization of spreads and commissions
LaaS providers apply advanced pricing algorithms and market-making strategies to maintain spreads adjusted to market conditions. This allows the desks to offer more competitive prices to their clients, reducing operational costs and increasing profit margins. Additionally, private and customized trading facilitates the negotiation of commissions and fees, providing greater flexibility and control over transaction costs.
Reliability and security in transactions
The integration of LaaS offers a robust infrastructure that includes constant monitoring, auditing, and risk mitigation mechanisms. This reduces exposure to counterparty failures or insufficient liquidity, providing greater security in transactions. Furthermore, collaboration with reputable liquidity providers ensures compliance with regulations such as KYC (Know Your Customer), AML (Anti-Money Laundering) and CTF (Counter-Terrorism Financing), aligning with the requirements of Bacen, CVM, and Law 14.478/2022.
What are the use cases and practical examples of LaaS?
Some global exchanges have already implemented LaaS to optimize liquidity and operations:
Medium-sized exchanges that do not have sufficient own capital for all pairs can access external pools and quickly expand their token catalog.
Cryptocurrency desks use LaaS to serve institutional investors, executing orders of millions of dollars without impacting the market price.
Comparison with traditional solutions:
Solution | Liquidity limit | Slippage risk | Required capital |
Internal | Dependent on own capital | High on large orders | High |
LaaS | Access to multiple pools | Reduced | Moderate to low |
Informational content. It does not constitute an offer of securities, exchange services, or payment. Past performance does not guarantee future results. Azify operates directly or through duly authorized partners, as per the scope. Evaluate risks, accounting and tax impacts with your advisors.
How to evaluate LaaS providers?
For exchanges and desks, a choice of the LaaS provider should consider:
Liquidity pool solidity: size, asset diversification, and historical stability.
Regulatory compliance: observance of rules.
APIs and technical integration: robustness, execution SLA, and performance monitoring.
Security and auditing: security history, anti-fraud mechanisms, and strict KYC/PLD/FT.
Cost transparency: fees, applied spreads, and rebate policies.
Why is LaaS strategic for growth and competitiveness?
The adoption of LaaS allows exchanges and desks to:
Increase liquidity without compromising own capital.
Reduce slippage and offer competitive spreads.
Quickly list new trading pairs.
Efficiently and safely handle large institutional orders.
However, each decision must consider counterparty risks, regulatory limits, and governance, ensuring sustainable operation.
