British based, Sterling denominated exchange and devoted to security, compliance and reliability, Coinfloor is mulling a plan to launch a new market for Bitcoin aimed at institutional investors. The company realizes that as interest is going up in the digital currency from hedge funds and investment banks, the service would get new clients.
It will be an over-the-counter market for Bitcoin and according to Mark Lamb, the CEO of Coinfloor his company is seeing a lot of demand where most of the Bitcoin liquidity is happening off the books. He says that it is a similar problem to the equities market, where customers see a lot of these orders happening on dark pools.
To find a solution for such a problem, Coinfloor, the company, which launched the last year, is partnering with a Financial Conduct Authority-regulated trading firm. The partnership is expected to help Coinfloor will provide a platform wherein financial institutions will get Bitcoin in bulk. The measure is expected to give impetus to investors to buy and sell Bitcoin in bulk.
Interestingly, the announcement says that the silent partner will act as a “market maker” i.e. it will facilitate buying and holding Bitcoin and ensure that investors get the currency as and when they need. Coming from an organization that is registered Bureau de Change with HMRC and providing 100% multi-signature cold storage policy, the plan looks promising.
Ambitious Planning on Its Way to Execution
Earlier in his statement, Tom Robinson, director of the UK Digital Currency Association (DCA), declared that as his organization sees institutions are showing their interest, especially hedge funds; it is an opportune time to open such a market. He also revealed that some investment banks in Europe showed their interests in such a market/mechanism.
Institutional investments are coming up in Bitcoin as well; for instance, earlier some institutions in the US made bets on Bitcoin wherein the Wall Street hedge fund Fortress Investment revealed that it had bought $20m (£12m) of the virtual money and has reportedly invested $10m in the London-based Bitcoin exchange Bitstamp.
Tom Robinson who apart from being the director of the UK DCA also running Bitcoin storage business Elliptic that handles the crypto-currency for US-based Falcon Global Capital, the world’s first Bitcoin investment fund, has partnered with Coinfloor, Bitstamp and Elliptic to give impetus to the digital currency in the UK.
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