Bitcoin Unicorn Circle Reports 30% Increase in New Institutional Clients in May

Just as your eccentric uncle swears to have seen Bigfoot, the monster of Loch Ness, or - for readers of West Virginia among us - Mothman, many industry professionals say for months that institutional investors are preparing to penetrate the markets cryptocurrency. a major way.

This event, announced by the oracles, would break the backs of bears and propel the price of bitcoin to a new historic high - perhaps even by the middle of the year.

However, as the months dragged on, the price of bitcoin continued to plummet, yet the advent of institutional messiahs, which dates back to a long time, never happened - to the great pleasure of Buttcoin.

This may change, at least according to a self-service cryptocurrency trading desk (OTC), which facilitates off-exchange trading for institutions, hedge funds and other large-scale buyers and sellers.

Speaking with CNBC, Circle CEO Jeremy Allaire said his company's institutional trading - Circle Trade - saw a 30% increase in new institutional clients in May, even though the price of bitcoin dropped due to its lowest mark that it finally crossed last weekend).

"In May, which was a difficult month, we saw a sharp increase in new unique counterparts," said Allaire. "Many people on the institutional side are boarding, and having their ducks in the ranks."

Commenting on this development, he said Circle had identified the lack of an electronic trading interface as a barrier to more institutional activity on OTC cryptocurrency platforms.

Despite managing more than $ 2 billion worth of transactions each month, Circle Trade, like most other over-the-counter brokers, has so far conducted telephone transactions or instant messaging programs such as Skype.

Now, the company - which is now valued at nearly $ 3 billion following a recent $ 110 million round of financing - automates this process through an electronic interface.

"Large institutional investors do not go through a telephone broker, they go through an electronic interface," said Allaire. "We are maturing in a more traditional product; it's much faster and a more flexible way of doing business. "

As CCN has pointed out, Circle does more than just update its trading interface to attract sophisticated customers. Allaire also stated that in the short term, the Company expects to register with the federal regulators as a dealer, which will allow it to establish a list of securities on its platforms. In addition, Circle intends to pursue a national banking license at some point in the future.