Seed CX Debuts Bitcoin Spot Trading Market
Seed CX has finally taken a big step towards bringing institutional to the cryptocurrency world. The exchange startup, which is based in Chicago, announced the launching of its Bitcoin spot trading market. The latter targets the firm’s major clients and is meant to offer a regulated platform with a “deep book” aimed at liquidity.
The Bitcoin Spot Trading Market
According to the official report, the Bitcoin spot trading market can be accessed via a web API. This is basically a graphical user interface, which is also known as the financial information exchange or FIX protocol. The revelation of the trading market was made official through a press statement from the exchange firm.
Seed X was successful in raising around $25 million since its launching in 2015. Now, the startup is looking to offer a licensed exchanged specifically built for institutional trading and settlement. The company, at some point in the near future, will start offering a market for all digital currency derivatives that are regulated directly by the United States Commodity Futures and Trading Commission (CFTC)
As per the words of Edward Woodford, the co-founder and CEO of Seed CX, the company will be offering level support that is “truly institutional.” He told the media that the exchange will soon offer a Bitcoin/U.S. dollar trading pair. Moreover, this would come with plans to include dollar pairs for altcoins such as Bitcoin Cash and Litecoin, all of which are expected to arrive by the end of the month.
Woodford said by February, Seed CX will be offering more in terms of trading pairs. He stated that they will be adding euros and Japanese yen. The executive explained that the company’s offerings are targeted at institutions, particularly those that are looking at the market after several months of price declines.
How to Manage Risks
Woodford reiterated that there are risks involved, but the company has plans to decrease these. For instance, the firm is going to help investors when it comes to margin trading. This will be made possible by using larger tick or minimum price movement, as well as taking leverage on contract sizes when compared to retail trading platforms. Lastly, the startup will be employing tighter quote requirements meant specifically for its clients.
All of the U.S. dollar deposits will be reportedly stored in regular banks and, at the same time, insured via the Federal Deposit Insurance Corporation (FDIC). As for digital assets, they will be stored via the wallet infrastructure of Seed CX.