Bitstamp to Launch Bitcoin Leveraged Trading Platform for Institutions
Popular cryptocurrency exchange Bitstamp and California-based Silvergate Bank have partnered to launch a new commercial Bitcoin leverage product. It would allow institutional investors to trade with leverage guaranteed by Bitcoin and held on the exchange.
The Luxembourg-based cryptocurrency exchange recently announced its participation in Silvergate Bank's new product: SEN Leverage. Investors will have the option to obtain USD loans secured by bitcoins held on Bitstamp. Initially, the new platform will only be available to a select number of the bank's institutional clients. It will be powered by the Silvergate Exchange Network (SEN), and both companies have already begun the pilot phase.
[amazon box="1947910035"]Trading with Bitstamp and Silvergate leverage
According to Miha Grcar, Bitstamp’s Business Development Director, SEN Leverage provides a key feature that will help all customers. She says: “Silvergate’s 24/7/365 real-time ability to fund loans and accept repayments via SEN, allowing Silvergate customers to more flexibly manage their bitcoin positions.”
“Our digital currency clients have asked us to help them create greater capital efficiency, and we are excited to work closely with Bitstamp to solve this problem for them. The integration and work that our collective teams have put into this over the past six months is a testament to our commitment to serving our clients . ”
CEO by Silvergate, Alan Lane
Other options for institutional investors
Institutional investors' interest in Bitcoin and the cryptocurrency market appears to be on the rise in recent months. Different companies offer a wide set of investment options, such as Bitcoin Futures physically delivered and settled in cash, and Bitcoin Futures Options.
Bakkt , ICE's Bitcoin futures trading platform, launched several products in this area last year. It's considered another significant step toward mass adoption, primarily due to its regulated storage and price discovery capabilities.
More recently, the Chicago Mercantile Exchange also added another product to its portfolio. As of January 13, CME Hours It also offers options on Bitcoin futures and is already gathering high volumes of trading. Although SEN Leverage is a different type of product, it still appears as a step in the right direction when it comes to attracting more institutional investors.
