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Major financial market players are entering the cryptocurrency space



The New York Stock Exchange (NYSE) is the largest stock exchange in the world, and the company associated with it has a total market capitalization of $ 24.2 trillion. The daily trading volume of the NYSE can reach $ 200 billion, which currently exceeds the market capitalization of all cryptocurrencies.

So why are traditional exchanges starting to use new money created using blockchain technology ? Obviously, this is part of their strategy.

The purpose of the exchange is to create a streamlined regulated platform for the exchange of financial instruments, such as stocks, bonds and other assets (for example, cryptocurrency ). A large exchange seeks to cover even a larger part of the market, so it cannot miss the “high-tech” clients present in the cryptocurrency market.

The October study of Octenture 2018 shows that Fintech companies are more and more often winning back the profits of banks. Exchanges can reduce the long-term risks of companies, because they work with a new class of digital assets that their current and future customers may require.

The Intercontinental Exchange (ICE), the parent company of the NYSE, describes its activities as “[uniting] the largest community from all markets at key stages of investing, trading, hedging and increasing the life cycle of capital”.

Thus, they provide interaction of investors (speculators) with other investors, retail or institutional. If market participants risk buying and selling, then the exchanges definitely make money by levying commissions, just as raiders “watch over” the casinos.

Bakkt declares that its commission will be only $ 0.50 for each bitcoin-contract. Next month, the new company ICE Bakkt will launch daily Bitcoin Futures Contracts (BTC), which will allow to exchange the No.1 cryptocurrency on the trading platform.

The platform will be governed by the Commodity Futures Trading Commission (CFCT). Bakkt is designed to arouse institutional interest in Bitcoin and other cryptocurrencies.

Behind the creation of the exchange are structures with huge financial opportunities – Starbucks, Microsoft and Boston Consulting Group. Based on this, it can be concluded that the leaders of these global companies are planning to earn serious money on cryptocurrency trading.

Large organizations (such as the NYSE) are trusted with large amounts of capital, so they have financial controls in place to prevent fraud. They hire top-notch lawyers and accountants who know how to follow complex rules. They will be able to curb the Wild West cryptocurrency coins and create an appropriate environment for them.

In December 2017, CME Group (the largest futures market in the global market) launched a contract for Bitcoin futures , which allowed large investors and institutions to bid on the future price of BTC.

If hedge funds, investment and pension funds, corporate treasuries and other companies will pour into such digital coins as Bitcoin, Ethereum (ETH) , Ripple (XRP) , Litecoin (LTC) hundreds of billions, most likely the prices will exceed the peaks noted in January 2018.

Wall Street Guru Mike Novograz expects large capital to enter crypto space in the first or second quarter of next year, but this will require storage solutions. Traditional exchanges and investment companies (for example, Fidelity) are already working on processing large transactions and ensuring the security of their clients' assets.

Traditional stock exchanges, banks controlled by the authorities, which Satoshi Nakamoto was just trying to exclude from the chain, change their attitude towards modern money. That is why ICE, CME, Fidelity enter the world of cryptocurrency.

As we see, now the exchange will allow other companies to acquire and sell decentralized and anonymous cryptocurrency .

  • bitcoinBitcoin (BTC) $ 18,746.33
  • ethereumEthereum (ETH) $ 1,281.68
  • cardanoCardano (ADA) $ 0.430523
  • polkadotPolkadot (DOT) $ 6.28
  • chainlinkChainlink (LINK) $ 8.02
  • litecoinLitecoin (LTC) $ 51.81
  • stellarStellar (XLM) $ 0.108470
  • bitcoin-cashBitcoin Cash (BCH) $ 111.30