Chicago has lately been shifting focus to accommodating cryptocurrency businesses into its domain. This process is transforming it to become a center of attention for many companies dealing in crypto and blockchain across the globe.
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Crypto Companies plan to launch operations in Chicago
The latest reports indicate that several companies are planning to establish offices in Chicago with the goal of taking advantage of the fast growing crypto trading market as was disclosed by the vice president of Jump Capital, Peter Johnson. Jump is a venture capital firm affiliated with Jump Trading.
Coinbase, also with offices in Chicago, has embarked on strategies it deems crucial in helping it draw more institutional traders to its exchange. The introduction of colocated servers has been commended by several market observers, which will enable Many traders’ computers to be closer to the trading platform itself and that translates to more simplified and faster trading activities.
DRW Holdings and Jump are big names when it comes to cryptocurrency trading. CBOE Global Markets and the CME Group are trusted exchanges offering bitcoin futures trading and all of the above mentioned names are based in Chicago.
The associated fears
Concerns about reputational risk and market volatility, however, are pushing the big New York banks to think twice regarding the adoption of this new asset class, in contrast to Chicago. They have been quite slow at adopting it.
The President of CME’s clearing operation, Sunil Cutinho, while speaking to a panel outlined that San Francisco, Coinbase’s home, was getting more focused on the technology. He said that he was personally a believer in cryptocurrency markets, and also that he expected that in ten years cryptocurrency markets may climb much higher in his opinion.
Still, bitcoin has declined by about 70% from its all-time high that was recorded last year. A lot of companies have lately been shunning advertisements linked to the nascent digital coin market whereas others have been clamping down on exchanges.
Bitcoin (BTC-USD) is currently trading at $7,675.02, down 3.39%.
Ethereum (ETH-USD) is trading at $598.91 down 3.68% and Ripple (XRP-USD) is trading at $0.62 down 3.22%.