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Circle has sold billions of bitcoins (BTC) OTC
Since Bitcoin (BTC) reached its all-time high at the end of December 2017, only one fateful year ago, the main cryptocurrency fell by as much as 81%, publishing a performance that can only be described as depressing. Yet dozens of reports indicate that institutional players have only advanced further into this nascent battlefield, infusing billions of dollars worth of capital flowing freely into Bitcoin and its cryptic heritages.
Although these reports have been deemed credible by a myriad of researchers / analysts in the industry, the market has just moved, which gives rise to the "million dollar question" – how are the greenbacks supported by the institution entering the cryptocurrency sector?
And while many struggled to discern the solution to this pertinent inquiry, the answer could have flown right under the nose of the industry forever. The answer, if you have not already considered it, is the sudden appearance of over the counter (OTC) counters from / supported by the main crypto startups, such as Coinbase, Binance and the fintech company supported by Goldman Sachs that is Circle.
The Boston-based company provided an update on its Bitcoin-based OTC services, targeting hotspots and well-known Wall Street names, in a recent blog post & # 39; 2018 review-esque & # 39 ;.
Our co-founders reflect on a transformative 2018 that included new products, customer growth and the learning of important lessons on building an open global financial system.@Poloniex @centre_io @circleinvest @ResearchCircle @jerallaire https://t.co/1sATjRn0xf
– Circle (@circlepay) January 3, 2019
For the post, which was created by the co-founders of Circle Sean Neville and Jeremy Allaire (who recently said that the price of Bitcoin will explode drastically over the next three years), the OTC business, Circle Trade, has "continued to expand , [in spite of the] tumultuous year for industry ".
The business has presumably seen more customers than ever, as the service now covers every day of the week (and at any time of the day) in the United States, Europe, and Asia – the three largest crypto markets. Technical developments were also an advantage for the trading service, with "significant improvements in workflow", including the launch of the "RFQ Electronic API".
This inflow of customers allowed Trade to execute over 10,000 over the counter transactions in 2018, with over 600 distinct counterparties participating in these transactions. These 10,000 transactions, valued at over $ 24 billion, presumably refer to 36 different cryptographic assets, including Bitcoin, Ethereum (ETH) and other major cryptocurrencies. This accentuates the fact that institutions continue to invest in this sector and see the long-term potential in this nascent asset class – which many say is ready to take control of traditional financial systems over time.
Coinbase & Binance trying to get some institutional cake
This augmented increase in institutional demand has not gone unnoticed, this is certain.
At the beginning of November, Changpeng "CZ" Zhao, the heavyweight behind the industry giant that is Binance, made its appearance on CNBC Africa Crypto Trader, talking to guest Ran NeuNer on the cryptocurrency status. After claiming that "something will trigger" an upward rush, "sooner or later", CZ, lending its understanding as stock market CEO, has revealed that the OTC cryptographic market is "at least as large as the volumes recorded live". And just a few weeks later, Binance invested $ 3 million in Koi.Trade, an emerging platform that serves as an OTC window, specializing in facilitating encryption orders not issued by investors.
Coinbase followed the example by secretly opening an OTC desk to capitalize on the influx of institutional demand.
So while BTC has dropped dramatically from its all-time high, many institutional actors still seem ready to continue their foray into this asset class.
Benjamin Bill USA Image Courtesy of Vladimir Solomyani On Unsplash
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