The Chicago based startup, the Seed CX cryptocurrency exchange, announced that they have launched a bitcoin spot trading market for their major clients which will offer a regulated platform with a “deep book of liquidity”.
This is a significant step to bring institutional investors into the crypto space. “We’re offering truly institutional level support. We are live,” said Seed CX co-founder and CEO, Edward Woodford.
The Seed CX Cryptocurrency Exchange Will Offer Bitcoin And USD Trading Pairs
The exchange will offer a bitcoin/US dollar trading pair, with plans to add dollar pairs for Ether, Litecoin and Bitcoin Cash by the end of January. They are planning on offering more trading pairs with the Euro and Japanese Yen by February.
Seed CX also have plans to offer a market for crypto derivatives, regulated by the US Commodity Futures Trading Commission (CFTC). They plan to help investors with margin trading, use larger tick and contract sizes than retail trading platforms and employ tighter quote requirements for their clients. In addition, clients will also be able to post non-traditional assets, including digital ones, as collateral.
It’s not only crypto startups showing interest, Seed CX say that the number of clients has increased recently, bringing in external money.
“The price normalization hasn’t stopped legitimate large groups from entering (the crypto space),” said Mr Woodford. “The narrative right now is ‘low prices, low prices, low prices’, and the question is how do we respond to this? In a sense, we’ve launched months ago, but now we’re getting a whole bunch of clients looking to decrease their operational risk”.
To avoid any conflicts of interest, the exchange does not trade against customers and actually forbids its roughly 40 employees from trading cryptos. Unlike most exchanges, which store deposits in a single wallet, institutions using Seed CX’s storage facilities will have their own wallet and will feel secure that the chances of hacking are minimized, after all, it’s much more difficult to hack hundreds of wallets than it is to hack one.