Amid Negative Feelings Circle Attracted 30% More Institutional Investors
The payment application Circle experienced a 30% increase in institutional investors. Most of them joined the ‘Circle Trade’ platform in May of the current year. Circle is working in order to offer a better product by introducing more automation to the platform.
Circle Grows Amid Bear Market
The cryptocurrency market has been in a bear market since the beginning of the year. Bitcoin has lost almost 70% of its value and it may fall even further. But this does not mean that investors have been far away from the market. Indeed, it may be a great moment to enter for most of them, when the prices are down.
The company backed by Goldman Sachs (Circle), experienced an incredible number of individuals joining the platform.
Jeremy Allaire, Circle’s CEO, commented about it:
“Major institutional investors don't go through a telephone broker. They go through an electronic interface.”
In order to deal with this uptick, the Circle Trade platform is being updated to become more digitized and automated.
“In May, which was a challenging month, we saw a sharp increase of unique new counterparties,” commented Allaire. “A lot of folks on the institutional side are on-boarding, and getting their ducks in the row.”
The company has seen a 30% increase in the amount of institutional clients using the platform. Additionally, it was doing 15 times more transaction volume per day, compared to an year ago.
Circle aims to obtain a federal banking license in the United States with the intention to provide more services to customers. At the same time, the company is working with its clients to help them handle tokens deemed as securities.
Currently there is no cryptocurrency-related organization that has obtained this status by the US regulators. Allaire believes that working with regulators will help it find a place in the ecosystem.
At the moment, Bitcoin is being traded around $6,100 dollars at the time of writing this article.