Bloomberg LP is on course to start listing bitcoin prices on its terminals for financial data, a move that may carry the weight of endorsement for the volatile virtual currency and trigger interest in US-based exchanges.
The company posted on its corporate blog that its subscribers, who are more than 320,000, will be able to track bitcoin prices from San Francisco-based Kraken and Coinbase. According to Wall Street Journal, Kraken is considered a bitcoin exchange. On the other hand, Coinbase operates much more as a broker-dealer. The firm facilitates payment processing for merchants while offering individuals digital wallet services.
A source close to the developments said that Bloomberg made the move after it received numerous customer inquiries on bitcoin prices.
“While bitcoin and other virtual currency markets are still nascent, they represent an interesting intersection of finance and technology. Given that Bloomberg sits squarely at that intersection, providing pricing for this underdeveloped market is a natural fit for us,” said Ton Van Name of Bloomberg.
The Bloomberg’s chief of fixed income, currencies and commodities added that the move was in line with the company’s goal of bringing transparency to markets, including cryptocurrency.
In conveying bitcoin prices from the two exchanges, the company does not improve or standardize existing prices. The news company said its decision was not an endorsement of the digital currency or a bitcoin assurance. It added that subscribers will not be in a position to execute bitcoin trading via its financial data terminal.
But investors appreciated the move as a stamp of approval for bitcoin, which has declined by around 50% since December 2013 after suffering a string of blows.
As Venturebeat reports, Kraken and Coinbase are likely to reap hugely from their latest engagement with Bloomberg. The firms are in competition with the two largest bitcoin exchanges in the world, Bitstamp of Slovenia and BTC-e of Bulgaria.
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