Payment solutions provider Square, in a recently published quarterly report said that the company prefers cooperation with private brokers and over the counter services (OTC) to service customer transactions with bitcoin using the Cash app App.
Square customers making buying and selling cryptocurrencies using the Cash app App does not interact with the public exchanges, private brokers and OTC platforms. According to the company, this approach is intended to protect users from excessively sharp fluctuations of bitcoin prices. The latter is often observed in traditional marketplaces when come into play “whales” of the cryptocurrency market.
“Working with a broker is likely to give Square more efficient pricing and execution of orders, rather than floating orders on the open market. Also, this approach provides a higher level of privacy”, said Meltem Demirors in conversation with CNBC.
Thus, in the Square are convinced that private brokers and OTC platforms can provide faster and more efficient service to bitcoin transactions, as well as to help conceal their activities from competitors in the market.
The company also stated that this approach will allow to avoid various security issues and, in particular, to hacker attacks, which often happen on centralized exchanges.
In a recent study from the TABB Group says that the turnover of OTC trading in bitcoin could exceed the volume of trading on traditional exchanges. The OTC platform is most popular among affluent investors and companies involved with cryptocurrencies.
According to experts TABB Group, daily on OTC platforms transactions with bitcoin for a total of $12 billion, According to CoinMarketCap, the current daily trading volume in pairs: BTC on traditional cryptomeria is $4.3 billion
ForkLog previously reported that in the second quarter Square is doubled the profits from operations with bitcoins using the Cash app App.