Boerse Stuttgart Group, a leading German stock exchange and financial company is set to launch a crypto trading platform. This is according to a new press release issued by the firm.
The new system will be developed in conjunction with solarisBank and launched in 2019. SolarisBank will provide crypto trading banking services to the exchange. The venture will conquer new frontiers by integrating a hybrid system into a traditionally fiat network. This is according to solarisBank CEO, Roland Folz.
According to the report, the system will initially support transactions in an assortment of established cryptocurrencies, including Bitcoin and Ethereum, and will go live once its ICO is launched. The hybrid system will be able to serve both institutional and private clients.
While Boerse Stuttgart is a regional leader in securities and equities trading in the region, solarisBank has significant experience in supporting private financial products and uses APIs to offer modular services.
The new project announcement comes at a time when the cryptocurrency market is in a bearish mood and sentiment in a few related market segments is low. Nevertheless, the venture will help bring cryptocurrency markets closer to mainstream and institutional players.
Other Major Exchanges Working on Similar Ventures
Nasdaq, the U.S. stock exchange, is also working on a crypto derivatives trading platform. It is the second biggest stock exchange on the planet by market capitalization, and will reportedly join forces with VanEck to trade in bitcoin futures.
The companies are set to offer regulated crypto futures to investors and make use of the SMARTS market surveillance system utilized by Nasdaq, to guarantee transparency and inspire confidence in investors and regulators. The SMARTS program uses sophisticated algorithms to detect suspicious market moves, including wash-trading and spoofing.
The joint Nasdaq-VanEck project is scheduled to go live in early 2019. Speaking at the Consensus Invest conference in November, VanEck’s director of digital asset strategy, Gabor Gurbacs, said that the company was working hard to obtain approval from the Commodity Futures Trading Commission.
Another major Wall Street firm, Intercontinental Exchange, which operates the New York Stock Exchange (NYSE), is also working on offering bitcoin futures to investors in 2019. The product, dubbed the Bakkt Bitcoin Daily Futures contract, is set to be launched via the company’s Bakkt platform.
The program was set to be launched towards the end of 2018 but faced some delays. The company blamed unforeseen launch processes for the setback. January 24, was announced as the new launch date. According to Bakkt CEO, Kelly Loeffler, an extension would allow stakeholders and collaborators to be better prepared for the event.
The bitcoin futures offerings from the exchanges come at a time when the market is experiencing yearly lows that have left many HODLers and investors unnerved. Currently, bitcoin is changing hands at about $3,150.
That said, however, crypto derivatives trading is reportedly on the rise on markets in other parts of the world. The SIX Swiss Exchange, for example, is reportedly experiencing a huge spike in capital inflow as institutional investors try to take advantage of the bitcoin price slump.
It is expected that the current bitcoin downtrend will lead to more institutional investors getting into the sector as weak hands are edged out.