Crypto trading platforms choose white label exchanges because it provides them several advantages such as faster launches, lower costs, and lesser risks.
Designing and developing software from scratch requires a lot of engineering efforts. Alternatively, buying a trusted white-labeled exchange saves more resources and time. The modules are already developed by experts and eliminates the need for having in-depth technical expertise or experience.
This is a highly beneficial practice followed by major trading platforms and is gaining huge adoptions. There are several cryptocurrency exchange development agencies that offer sophisticated exchange platforms with advanced features and high-end security. These platforms are easily customizable and can be facilitated to integrate changes without interfering with the technical infrastructure.
They can be centralized, decentralized, P2P, or hybrid. It can be a fiat-to-crypto exchange or crypto-to-crypto exchange. They also integrate several payment processors and wallets.
The core of white-labeled exchange solutions is market-ready. All you have to do is install, configure, and deploy the exchange in your platform.
You can read more information from https://www.epixelmlmsoftware.com/cryptocurrency-exchange-software
As someone who has worked in several crypto companies and exchanges, I feel I am specifically qualified to give some insight here.
There can be a number of reason as to why one would do this.
'Whitelabeling' is basically being able to use the technology of another company, which in this case would be their exchange engine. However, when whitelabeling, the creator of the technology allows the other company to use its technology WITHOUT the branding of the other company. Basically, I have an exchange platform. I can build one just like mine but for you, and we call it your platform. Same technology, different owners.
If you would love to have a free 15 min call to discuss your idea in further detail feel free to message me and I will send you a free link