While some crypto companies are focused on bringing new technologies to the masses, trying to make cryptocurrencies closer to a wide audience, some others target their initiatives and projects at institutional investors, believing that institutions should head the way to mass adoption. There are also a row of startups that work with both types of clients.
Seed CX Spot Tradin
As it has been revealed, Seed CX, the Chicago-based exchange startup, has taken decision to join the movement and to help institutional investors enter the crypto space.
According to the announcement, the startup has launched a Bitcoin spot trading market for its major clients. As a result, clients will have a possibility to use a regulated platform with “a deep book of liquidity.”
The company has also stated that access to the market will be available via a web API, a graphical user interface or the financial information exchange (FIX) protocol.
With the help of its subsidiaries, Seed CX offers a licensed exchange for institutional trading and settlement of spot digital asset products. Moreover, the company is planning to start offering a market for crypto assets derivatives which will be regulated by the U.S. Commodity Futures Trading Commission (CFTC).
The main aim of the project is to provide institutional investors with more confidence and to help them leave aside their concerns relate to regulation, technical reliability, and conflicts of interest.
Speaking about the specificity of their project said Edward Woodford, co-founder and CEO of Seed CX, said:
“There is no shortage of digital asset spot trading markets, but none have our vision for creating an institutional-grade experience across technology, operations and compliance. We are getting very positive feedback from recently onboarded customers, and we are quickly onboarding more investors and trading firms from around the world.”
Seed CX has already launched trading on BTC/USD, and ETH/USD, and the launch of LTC/USD and BCH/USD pairs trading is said to take place later this month. It is said that in February there will be even more trading pairs in the platform as the company is going to include euros and Japanese yen to its offering.
Woodford also explained that their offering is coming rather timely, adding:
“The narrative right now is ‘low prices, low prices, low prices,’ and the question is how do we respond to this. In a sense, we’ve launched months ago [by on-boarding early clients], but now we’re getting a whole bunch of clients looking to decrease their operational risk.”
One of the tasks that Seed CX has is to reduce risks for investors and in line with these efforts the company is going to offer margin trading, introduce tighter quote requirements for its clients and use larger tick and contract sizes in comparison to retail trading platforms.
Moreover, Seed CX prefers not to store all clients’ funds in one place like the majority of crypto exchanges do but to keep segregated wallets for each client.