First Global Credit, a Switzerland.-based financial services company that allows bitcoin to be used as collateral margin to trade stocks, has expanded its range of equities to include shares traded on the London Stock Exchange, according to Finance Magnates.
A trading and financial services company that focuses on bitcoin, First Global Credit allows bitcoin holders to use the value of their cryptocurrency in the same way other traders use fiat currency to create profit potential. Customers use bitcoins as assets to generate returns trading stocks, EFTs, precious metals, commodities and stock market indices. They do not sell their bitcoins to access this capability. Instead, customers’ bitcoins serve as collateral margin to secure market positions.
The company launched its investment service in 2014, promising to “bridge the gap between cryptocurrencies and global stock markets,” CCN reported.
Customers deposit bitcoins as collateral margin to secure long or short positions in stock markets. Using a derivative called TRS (total return swap), First Global Credit purchases shares on behalf of customers, with profits and losses determined from positions settled in bitcoin, according to Silicon Angle.
The new announcement indicates customers now have access to highly-traded London Stock Exchange shares such as Telecom Plus, Barclays Bank and Vodafone in addition to U.S. stocks.
Jon Matonis, a former executive director and board member of the Bitcoin Foundation, joined First Global Credit’s board as a non-executive director.
Marcie Terman, the company’s communications director, said the best way for First Global Credit to serve customers is to provide choice. The company provides a variety of stocks including Internet, health care, entertainment and technology. It plans to offer equity trading in a wide range of countries starting with the United Kingdom.
First Global has more than 1,300 registered clients on its platform trading nearly $2 million worth of stocks monthly, 14 months after its launch, she said.
The company’s services also include using bitcoin collateral to move in and out of fiat without closing stock trades. Terman said it was previously hard to find any option for turning bitcoin into a productive asset.
“Our clients have a distinct edge over other bitcoin holders because they can extract profit from their capital in two ways,” Terman told Finance Magnates.
In addition to trading services, Global First Credit offers interest-bearing accounts, debt instruments, merchant services, manager-directed funds and currency exchanges.
The Switzerland-based company has offices in Canada and Singapore.
Images from Shutterstock and First Global Credit.