Welcome to our Seed CX news page. Here you'll find some of our featured Seed CX Exchange content pieces as well as all our latest Seed CX Wallet posts.
Seed CX Launches a New Wallet for Institutonal Investors to the Market with Its Zero Hash Subsidiary
The cryptocurrency exchange Seed CX has launched a new wallet specifically designed for institutional investors. Seed CX offers exchange services focused on institutions. This time, the company will be offering a new wallet that features onchain settlement and provides customers with a unique wallet.
Customers will be able to easily check deposits, withdrawals and other transactions. The service increases security since malicious actors would not have to target a few wallets but, instead, many others.
According to Edward Woodford, the co-founder and CEO of Seed CX, said that the intention is to make hackers’ work even more difficult. This is something that would limit the amount of funds that could be stolen in the future.
Woodward commented about this issue:
“On-chain settlement helps Seed CX provide trading firms with an experience that is both cost effective and high performance, while also providing the operational and financial security investors demand.”
In order to provide these new services, Seed CX will be doing it through its setlement subsidiary Zero Hash. Julie Myers-Wood, Zero Hash public director, explained that the company analyzed issues faced by other exchanges and took the necessary steps to tackle them.
The cryptocurrency market is becoming increasingle prepared to receive new investments from institutional investors. There are several other firms developing other institutional-grade projects such as the Intercontinental Exchange (ICE).
Seed CX Exchange To Forbid Nearly 40 Employees In New Crypto Trading Ban
Seed CX Has Barred Employees From Crypto Trading
Some companies go as far as barring their employees to trade cryptos because they might affect the market and that is just what SeedCX, a crypto exchange, has done. Coindesk reported on this story this week.
In the article, a man called Alex Wachli is featured. He traded cryptos since 2014 but, to enter the company, the software engineer had to give up trading. Seed CX does not let any of its roughly 40 employees trade. Walchli had to lock his crypto funds and give wallet addresses to the company’s compliance team in order for them to monitor their holdings.
The decision was taken, according to the company, because Seed CX is against the conflict of interest that can happen when employees trade cryptos. The policy was quietly started last year and it was one the most strict ones in the industry so far.
Traditional capital markets have very strict laws for how employees can or cannot trade in the markets they work in, but most exchanges still consider cryptos the “Wild West”, so regulations are not that much clear.
For instance, in the securities industries, you are forbidden from trading stocks when you know that a company will announce a merger or recall a defective product, for instance, so you could be sued for illegal insider trading. The company is very careful because it does not know what this could actually mean in the crypto context yet and they do not want to have any problem.
The main difference is that crypto assets are open source most of the time and that all trades are visible on the blockchain, so they are significantly different from these other ones. Sometimes people working at exchanges are more well-informed about trading trends, technical issues and liquidity or the listing of certain assets.
In the most traditional spheres of finances, it is certainly rarer for exchanges to be very powerful as the ones from the crypto market are. Because of this, the co-founder of Seed CX, Edward Woodford, has decided in favor of the no-trading policy, which he believes that will help the company as the terms are not yet established in the industry and they could be changed soon.
In avoiding all this risk, the co-founder of the company believes that the company might be protected later.
Binance has told Coindesk that it has a very “strict policy” against insider trading and that it is a very similar one to investment banks, however, they did not make it clear how the policy actually worked.
Coinbase’s Chief Legal Officer, Brian Brooks, has affirmed that the company only requires the most powerful members of the team, the ones with the decision-making process, to self-report their earnings. All employees have to sign a contract, though, and there are certain blackout windows when they launch new assets on the platform, for instance.
The policy created by Coinbase is old and has several years of existence. Despite this, its employees were already accused of insider trading when Bitcoin forked with Bitcoin Cash in 2017.
In addition to the restrictions, all employees of Coinbase need to have a written approval from the legal team in order to trade over a certain amount of tokens. This was made to stop them from manipulating the market and affecting it too much.
However, Michael Oved, known as a Wall Street vet and the AirSwap co-founder, has affirmed that this might not be enough. People who work in the traditional industry and invest in any kind of asset have to be compliant all the time. Every transaction that they make needs to go via compliance. Only companies like Seed CX have this level of thoroughness.
At the moment, the future of the whole crypto industry is very unclear. However, Coindesk has talked to some experts during its initial report in order to discover what is most likely to happen.
Many experts believe that the market will evolve in ways that more than self-reporting will be enforced. For instance, the attorney Jeremy Deutsch, which is a shareholder of Anderson Kill, an important law firm, has affirmed that almost all banks and capital market exchanges monitor their employees.
They may be restricted on trading, having their communication like emails monitored closely and even having external transactions like even buying real estate property either restricted or looked closely at.
The expert sees no reason as to why people who work with cryptos should not be held to the same standards as the rest of the industry. Even beyond securities markets, people have these restrictions. He simply sees no justification for not applying the same set of rules for these people who have the ability of having such a privileged access to the market.
He believes that in 2019 we might see more companies requiring their low-level employees to be more monitored than they currently are. Otherwise, he affirmed, people will start to see a huge amount of private litigation in the industry.
In the end, that is the whole point of Seed CX. The exchange wants to be fair game and it wants everybody to know it. The policy benefits the employees from being falsely accused of insider trading and the customers from being victims of insider trading. Therefore, there is a big consensus that the measure is both for everybody in the company.
Crypto Exchange Firm, Seed CX, Introduces QCP Capital to its Trading Platform
Seed CX, the institutional platform for trading digital assets and derivatives, has announced its slate to connect QCP Capital to its trading platform. On Thursday, the regulated derivatives market made the official declaration that will ensure one of Asia's leading digital-asset firms starts trading through Seed CX.
Seed CX's new connection will also geographically the need for different liquidity pools for QCP Capital customers, by allowing them access to a regulated exchange under the law. U.S investors could additionally get an added advantage in the form of liquidity for their digital assets by trading them within the Asian crypto ecosystem. Overall, the partnership with QCP Capital is in line with Seed CX's goal of becoming a global broker-dealer exchange that lists security assets.
CEO Edward Woodford further emphasizes on the new venture by saying:
"Seed CX's mission is to become the preferred trading venue for leading institutions across the world. Our connecting with groups like QCP Capital is a further sign that we are building an exchange that is attractive to top-tier trading firms and order flow throughout the globe."
QCP Capital Managing Partner, Darius Sit, was also vocal on the apparent benefits that both firms and customers could experience.
"Singapore is the Asian hub for digital asset investors, and we see Seed CX as the perfect partner for both QCP Capital and our clientele. We do expect our client base to see significant benefits from trading their digital assets on Seed CX."
Growing The Derivatives' Market
As a licensed and stable digital asset exchange, Seed CX is looking to expand its reach to include cryptocurrency derivatives. The goal is yet to become a reality since Seed CX is in the initial stages of building a marketplace for its derivatives products.
But with the exchange already having a license from the Commodity Futures Trading Commission, the firm confesses of the derivatives market being in the pipeline.
"Derivatives offer greater flexibility, giving the investors a capital-efficient way to take positions to hedge risks," said CEO Woodford. "That's what top digital assets trading firms like QCP Capital demand, and we are working with regulators on launching these derivative products."
Notably, cryptocurrency futures have been the leading asset to see growing participation since the introduction of their markets by CBOE. Perhaps more importantly, the rising interest comes at a time when Bitcoin is witnessing a considerable slump in its value. Could this be the real deal apart to replace cryptocurrency? It is still early to judge, but derivative crypto products should be around for quite some time.
Seed CX is a Chicago digital asset exchange that offers a market for institutional-based trading of spot digital assets. The crypto firm plans to provide an international market for its CFTC-regulated derivatives through backing from several global partners.
QCP Capital is a pioneering digital asset trading platform looking to help investors maximize their opportunities in the merging crypto markets. The Singapore-based firm leverages their global network to lead the charge in venture capital and technological development.
Seed CX Institutional Crypto Asset Exchange Adds Former Homeland Security Assistant
The institutional digital asset exchange Seed CX has appointed new public directors to different subsidiaries. One of the most recognised hirings is a former special assistant to the President of the United States, Cynthia Meyn. Additionally, she is an ex-Credit Suisse Chief economist. Other senior executives have also joined the company.
At the moment, Seed Digital Securities Market is working in order to become a broker-dealer and list security assets. SeedSEF, Seed CX’s swaps execution facility subsidiary, has also added new directors John D’Agostino, and Bob Paul. Mr D’Agostino is the Chair of the US Asset Management Working Group that operates in the US Department for International Trade. Bob Paul is a former General Counsel for the Commodity Futures Trading Commission (CFTC).
Julie Myers-Wood, CEO of investigative and compliance consulting firm Guidepost Solutions will be working as a director at Seed Hash, which is Seed CX’s settlement subsidiary. Myers-Wood has experience in the political field as a federal prosecutor. At the same time, Myers-Wood worked at the Department of Commerce. It is important to mention that she has also been working as a Special Assistant to the President of the US, among other important positions in the Department of Justice.
This shows that virtual currency companies are starting to attract several experts from the traditional financial and political fields. These experts will be guiding these companies towards a regulatory-compliant path to better develop cryptocurrency and blockchain-related services and products.
Seed CX Cryptocurrency Exchange, A Licensed Trading Platform Secures $15 Million In Funding
In a recent Series B funding round, the Seed CX crypto exchange managed to make $15 million. Statements reveal that Bain Capital Ventures led this lucrative funding round, which means that the exchange ultimately brought in $25 million total. The project is known for providing trading and settlement services, geared towards the market monitored and regulated by the Commodity Futures Trading Commission.
The goal for Seed CX is to establish an option for crypto users that is fairly similar to what other equities and commodities have. CEO Edward Woodford said,
"As a licensed exchange for both spot and derivatives trading, we deliver the operational risk safeguards, strong institutional technology, operational support, and regulatory compliance that institutions demand. What is particularly exciting is that our unique offering brings large institutional traders, who have so far sat on the sidelines, into the crypto space for the first time."
He added that he hopes that the platform can add professional traders, like institutional investors soon.
The funds accrued by the funding round are already allotted to the physical trading infrastructure of Seed CX. It will also contribute to expanding their network of trading groups, and their number of employees to 40 people. These individuals will be distributed among their operations, market surveillance, and technology departments.
Along with the funding round, Seed CX is awaiting a decision on their BitLicense application, which was filed through the New York Department of Financial Services. They also have a pending registration for broker-dealer interactions via the Financial Industry Regulatory Authority.