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SecondMarket to Launch Bitcoin Exchange for Institutional Investors

Chris in Uncategorized published on 25, April 2014

SecondMarket Bitcoin Exchange

New York-based online marketplace SecondMarket has announced its plans to launch later this year a professional-level Bitcoin exchange service targeted at institutional traders.

This exchange will allow Bitcoin transactions of a minimum of 25 BTC, which is equivalent to more than US$12,000, emphasizing that its full-service trading platform is directed toward investors aiming to move large blocks of the virtual currency.

This move will address the market that is currently supported by only a few companies, and it serves as the company’s initiative to attract interested investors through its website.

In fact, SecondMarket CEO Barry Silbert previously shared that already 15% of institutional investors believe in the power and potential of Bitcoin, hinting a brighter future for the company’s venturing into digital exchange.

However, due to the recent collapse of Mt. Gox and the erratic operations of some trading marketplaces online, SecondMarket’s Bitcoin trading platform will enact the necessary measures before giving investors the green light to trade.

According to the company’s website, interested customers will be required to complete a compliance application and to communicate with the exchange’s representatives before they can begin buying and selling bitcoins. Moreover, SecondMarket will assume the middle-man position as it will negotiate between the buyers and the sellers.

Upon an agreement, investors buying the digital currency will transfer their bitcoins to the wallet provided by SecondMarket, which will deliver the funds to the seller’s bank account after the transaction has received six confirmations.

Meanwhile, buyers must send their funds and wallet address to the company, which will be the one to deposit the bitcoins to the specified Bitcoin wallet once the parties involved have agreed upon a price.

Although a new page for Bitcoin ‘market making’ was recently added to the company’s website, Silbert cleared over Twitter that the trading exchange is yet to be launched.

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