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& # 39; The market is robust. & # 39;
This is how Jeremy Allaire, Chief Executive Officer of fintech startup Circle, described the nascent market for institutional cryptocurrency trading, which he said has seen dramatic growth in 2018 even as prices entered a bearish cycle.
Speaking with Business Insider, Allaire said that Circle Trade – the company's over-the-counter trading office – has doubled its minimum order size in recent weeks, although most transactions are much larger.
"The minimum ticket size was increased to $ 500,000 with an average of $ 1 million," he said.
Previously, the minimum order size for Circle Trade was set at $ 250,000, with the firm claiming to process OTC transactions of approximately $ 2 billion per month.
OTC trading is crucial for increased institutional adoption of cryptoassets, as these platforms allow traders to execute large orders outside of conventional stock exchanges, where a large order can cause large price fluctuations in the markets. world.
The now deceased Bitcoin Trustee exchanges Mount. Gox, for example, was criticized when he revealed that he had liquidated about $ 400 million of Bitcoin and Bitcoin Cash on order book exchanges rather than using a trading desk. OTC.
Allaire said that Circle, which received financial support from Goldman Sachs, processed over 100 million individual transactions.
"This watermark will continue to increase," he predicted.
Various platforms offer OTC trading services to institutional clients, and this number continues to grow as large companies begin to dip their toes in this asset class.
Gemini, the cryptocurrency exchange founded by Tyler and Cameron Winklevoss, recently announced that it would start offering trading blocks, with transaction data carried forward on a time frame to minimize its impact on prices currency exchange. Another American stock exchange, Kraken, has also started offering OTC transactions in April.
But while institutional trade remains at the center of Circle's cryptocurrency business, the company has also been expanding its retail product line in recent months.
Earlier this year, Circle acquired the Poloniex Cryptocurrency Exchange under an agreement valued at $ 400 million. Then, the company launched Circle Invest, a cryptocurrency investment application that allows users to perform commission-free transactions that take advantage of the company's OTC trading bureau.
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