Banks looking to back bitcoin with new exchange

second-market04 Apr 2014 / FX Week – Global banks and broker-dealers are among some of the organisations that are set to put their name behind a new digital currency exchange that is being set up in New York by online marketplace Second Market. Due to launch this year, the exchange is aiming to mirror the New York Stock Exchange by having members owning part of the exchange, and anyone looking to trade on the exchange having to do so by going through those members. It will initially launch with bitcoin versus euro and US dollar.

“We’re up to 10 banks that we are in various stages of discussion with. We’re in the process of identifying a founding group of members who would include representation from the global banking industry, money service businesses, broker dealers and some bitcoin companies,” says Barry Silbert, founder and chief executive at Second Market in New York.

The members and the exchange will be subject to governance by a self-regulatory organisation, which Silbert says will help US regulators support the project since exchanges that offer bitcoin are unregulated marketplaces. While most bitcoin exchanges can be accessed directly by the investor, the set-up of this exchange will attract institutional firms, says Silbert…. Read more

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