Startup Circle drew on his Circle platform Trade 30% more institutional investors in may, while bitcoin, by contrast, has lost in the last month 20% of its value. As reported by CNBC, in order to satisfy demand from customers, the startup has tried to make its product more “Mature” by automating the platform.
From the point of view of the dynamics of exchange of cryptocurrencies, neither June nor may not be called a good month, but this does not mean that the same is true of the situation with the involvement of institutional investors into the cryptocurrency markets and cryptoprotection in General.
Circle, which is one of the biggest startups for the industry in the United States and funded, including such giants of investment banking, like Goldman Sachs, faced with this surge of interest in this category of investors: in the past month with the Circle began to work hedge funds and other major companies.
“Large institutional investors are working through a phone broker. They work through an electronic interface. We make it more Mature, transforming into a more traditional product,” said Circle CEO Jeremy Allaire (Jeremy Allaire).
We will remind, in may, was launched the full version of the platform for kryptonsite Circle Trade, while at the stage of “early access” app functioned since March.
As noted in the company, in order to work successfully with the increased number of investors and to fully meet their needs, including high frequency trading, the platform has become truly digital.
“In may — the month was very busy, we were faced with a sharp increase in the number of brand-new participants. Many institutional investors now ready to interact,” said Aller.
During the interview, he noted that in view of the increasing number of users and a daily transaction volume increased 15 times in comparison with the previous year. And this is despite the downward trend of the courses of cryptocurrencies, which takes place from the beginning of the year.
The reasons underpinning such changes, to some extent, explain the feedback that Circle received from new customers, including representatives of family businesses and venture capital firms. According to them, in the form in which the platform existed, she did not have enough resources to cope with high frequency operations in the amount of $100 000 or $1 million, such as buying and selling shares, you need to large clients.
So, before employees start-up offices in USA, London and Hong Kong had to manually assign the price using the platform of instant messaging like Skype, and only then carry out the transaction. Now the process of working with orders and payment platform Circle, dealing with approximately $2 billion in turnover on a monthly basis, automated.
“It’s much more fast and flexible way of trading,” said Aller.
At the same time, as we have already mentioned, Circle plans to obtain a Federal license for banking operations in the United States and become a registered broker and trading platform. Plans — bold, given that none of the company, working with cryptocurrencies, has received such status from the controllers, but at stake is the opportunity not only to expand the range of services and allow investors to trade tokens that will be classified as securities.
Startup stressed trying to interact with Federal regulators such as the Commission on securities and exchange Commission (SEC), to avoid having to comply with the laws of the individual States, which differ from each other.
Note, if you keep in mind the scale of the company’s activities, such steps do seem obvious. However, at the helm — ardent supporters of the cryptocurrency: recently Jeremy Allaire said that all the world’s leading currency will one day become digital.
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