Chicago’s Seed CX Crypto Exchange Opens Bitcoin Spot Trading Market for Institutional Investors
In a major move, Seed CX has announced on January 23, 2019, that it now offers bitcoin spot trading market.
This spot trading option is open to their major investors and they will be able to trade through web API, a graphical user interface or the financial information exchange (FIX) protocol.
Seed CX was founded in 2015 and offers institutional trading and settlement. Besides this latest announcement, there are plans to offer the trading of crypto derivatives regulated by the CTFC in the future.
“We’re offering truly institutional level support. We are live,”
said Seed CX co-founder and CEO Edward Woodford.
The Current Offering
According to the management of Seed CX, the first crypto pairs that will be offered to their investors will be a bitcoin/U.S. dollar trading pair. By the end of the month, however, there are plans to introduce pairs for other currencies such as Ether, Litecoin and Bitcoin cash.
“In February we’re going to be offering more trading pairs, so we’re going to be offering up euros and Japanese yen,”
In terms of their target market, Seed CX says that they are going after institutions that want to enter the market after seeing the price slump that offered months ago, saying,
“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.”
Despite the low price of entering the market for investors, CX Seed still acknowledges that there is some risk involved and intends to help protect their clients from any potential issues.
For starters, they will offer support for margin trading and will use larger tick and sizes than a retail trading platform would offer. The quotation requirements for their clients will also be smaller than usual.
On the part of the clients, they will be allowed to use digital assets as collateral. To prevent any instance of an exchange hack and clients funds being lost, all fiat funds uploaded to the exchange will be stored at regulated banks as well as being insured by the Federal Deposit Insurance Corporation (FDIC). For cryptocurrency that is uploaded, they will be stored in segregated wallets on Seed CX’s wallet infrastructure.
Despite the current bear market, Woodford says that institutional interest in crypto is still high.
“It’s groups that aren’t just based in the crypto space. The price normalization hasn’t stopped legitimate large groups [from entering],”