“The platform essentially emulates what an E*Trade platform would be. We’ve tried to set up a professional foreign exchange trading platform in bitcoin for bitcoin, which we believe we’re the first to fill that niche.”
When investors trade currency with Bitcoin, they are essentially required to purchase both currency pairs because they have to deposit a fiat currency to purchase Bitcoin. On typical foreign exchanges, individuals are not required to do so. Shifting away from this, users on itBit will now be able to make small deposits on Bitcoin – a wager on the performance of bitcoin. BTC.sx reports the purchase of bitcoins on an exchange and the deal is completed. Trades can take place entirely in Bitcoin. There’s been a steady increase of Bitcoin exchanges embracing derivatives, margin trading, and other more advanced financial trading tools. OkCoin, one of the world’s largest Bitcoin exchanges, introduced margin trading in June and futures trading in August.
In an interview with CoinDesk, Joseph Lee explained that itBit and BTC.sx had been looking for ways to collaborate since 2013. The two teams met at the Asia Bitcoin Singapore 2013 conference and found common ground in their traditional financial backgrounds.
“What we were quite excited about was the real potential for trading derivatives to take a niche in the market that doesn’t exist,” Lee said. “An exchange is a very important part of that because that’s where the actual settlement occurs.”
Lee goes on to explain that he believes this partnership to be more about a shared global vision for Bitcoin
“ItBit is a very, very trusted name out there and the professionality that they aspire to, every other exchange should work toward,”
What do you think of this Bitcoin business development? Comment below!
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Last modified (UTC): October 21, 2014 00:43