Colt launches ULL DCA: ultra-low latency cloud connectivity to transform digital asset trading

Colt Technology Services announced the launch of Colt ULL DCA (Ultra Low Latency + Direct Cloud Access), a service set to go live this September that promises to reduce latency in trading operations between cloud regions, eliminating bottlenecks that previously limited exchanges and cryptocurrency trading firms.

The solution combines two well-established Colt technologies — ULL (Ultra Low Latency) and DCA (Direct Cloud Access) — into a single offering that enables private, predictable, and optimized data transfer between public cloud regions without requiring physical infrastructure or complex deployments.

The challenge: turning the cloud into a new “trading floor”

The digital assets market has evolved from on-premises platforms to inherently cloud-native environments, but connectivity across regions has lagged behind. Traditional options present clear limitations:

1. Public Internet — Cost-effective but with unpredictable latency and jitter, affected by congestion and suboptimal routing.
2. Cloud provider backbone — Secure and resilient but not optimized for speed; often introduces additional hops.
3. Customized private network — High performance but costly and complex, requiring hardware investments.

Colt ULL DCA positions itself as a fourth option, designed for cloud-native companies that need speed, consistency, and resilience without CAPEX burdens.

How Colt ULL DCA works

The service leverages Colt’s global ultra-low latency backbone, connecting over 275 cloud PoPs and 180 markets and exchanges worldwide.

– Optimized routes: avoid default CSP routing, selecting the shortest and most efficient path.
– Private connectivity: traffic is isolated from the public internet.
– Integration with MarketPrizm: direct access to market data and multiple liquidity venues from a single point.

Proof-of-concept tests conducted on AWS (Hong Kong ↔ Singapore ↔ Japan) achieved a 15% reduction in average latency compared to AWS’s internal backbone.

Key benefits for digital asset trading

– Faster execution: reduces slippage risk in high-frequency trading.
– Consistent performance: maintains stable latency even during high congestion.
– Fully cloud-based model: no reliance on local hardware.
– Global scalability: compatible across multiple regions and providers.

Comparison with other solutions

| Connectivity Option | Latency | Consistency | Security | Cost | Scalability |
|————————|———|————–|———-|——-|————–|
| Public Internet | High | Low | Medium | Low | High |
| CSP Backbone (AWS, Azure, GCP) | Medium | High | High | Medium | High |
| On-premises private network | Very low | Very high | High | High | Low |
| Colt ULL DCA | Very low | Very high | High | Medium | High |

Market outlook

Demand for ultra-low latency connectivity in cloud environments is growing as:

– Algorithmic trading shifts to hybrid or fully cloud architectures.
– Digital asset markets become more global, operating across multiple time zones.
– The need to reduce friction between market data, execution engines, and risk management platforms increases.

Services like Colt ULL DCA are not only relevant to exchanges and crypto market makers but also to FX, derivatives, and equity firms with cloud workloads.

Colt’s statement

“Cloud has become the new trading marketplace, especially in digital assets, but network infrastructure hasn’t kept pace,” says Wesley Edler, Colt’s Global Capital Markets Product Director. “With ULL DCA, we bring traditional market connectivity performance into the cloud era, reducing risk and extending reach without physical complexity.”

By adopting this solution, Colt strengthens its position in the capital markets infrastructure sector, where microsecond latency differences can mean the difference between losses and millions in profits.

via: colt.net

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