Barry Silbert is expanding his interests this summer by opening his own Bitcoin exchange that in many ways stands out from the already existing cryptocurrency markets.
What else can show the prosperity of the trend if not the willingness with which leading entrepreneurs are making startups associated with it, not taking into account hard times that this trend is going through? Silbert is both CEO and founder of the SecondMarket, which operates in the sphere of financial investment, providing alternative to more popular and traditional routes of investment. This previous project of his will contribute to the foundation of Silbert’s exchange by pouring $20 million in fiat and digital coin equivalent.
This unnamed venture of SeconMarket’s CEO will also be supported by another work of his - the Bitcoin Investment Trust. Looks like someone is deeply engaged with the digital currency!
However, enough about Silbert, his new exchange holds interest on its own without the background of its CEO. The exchange will serve two main functions. First, it takes the good old gold markets and uses those as the role model. Twice a day the Bitcoin market will freeze the BTC/$ exchange rate. That way Silbert is planning to reflect the situation on mining markets and derivatives more precisely than it have been done before.
Another role of this project is to act as clearing house. Certainly that would require the implementation of the Self Regulatory Organization (SRO), which would ensure the legitimacy of the deal between the clients according to the official regulators.
The most interesting feature of the Silbert’s Bitcoin market is that it will only allow to make financial operations to its members, meaning that kids who are not in the club cannot use this. This would provide additional regulation from the legal side of things. Looks like a neat clear picture for the governmental regulators if you ask me.
The CEO expects to have Wall Street Banks and cryptocurrency startups among the first clients of the service. He even goes further by saying, “The idea is the other exchanges of the world could actually become members of the exchange.”
The inspiration for this came from two sources. One of these is IntercontinentalExchange Group that works day and night to provide trading platforms for the financial products marketplaces and global commodity. The second muse is the well-known New York Stock Exchange, where brokers work as middle-man between the individual customers.
Interesting fact – at first exchange was to be simply the option of the SecondMarket, not the separate entity as it going to be now. Silbert does not give any detail on the change of mind only stating that it’s a structural decision not a regulatory one.
Silbert openly admitted to the press that as Mt.Gox went down, someone has to fill in the vacant niche and he hopes that his new project will be the one, thus showing that the cryptocommunity repairs on its own.