JPMorgan started considering new options to make Bitcoin trading more secure. Bank; He may be planning to establish a clearinghouse that will be located between OTC desks and traders.
Many traders who own Bitcoin first deposit that money on an OTC table or exchange in order to make any trading. As a result, there is more risk on the investor side and more liability on the service provider side.
It can make transactions more secure
JPMorgan is looking for ways to make Bitcoin trading more secure for both parties. According to Forbes’ Billy Bambrough’s report, the bank has begun to consider the clearinghouse option for this.
A clearinghouse to be positioned between trading platforms and traders can reduce the likelihood of Bitcoin transactions not being realized and contribute to liquidity formation. Clearinghouses ensure that exchange participants will fulfill their obligations. Thanks to the clearing house, the parties can make transactions without knowing each other.
Speaking on the subject, a JPMorgan manager said, “Essentially, a clearinghouse will be needed to achieve the necessary liquidity in cryptocurrencies. Banks can carry the liquidity to these chambers after that point. ” said. “Currently, none of the banks that open dealing desks for Bitcoin and cryptocurrencies use a clearinghouse,” said Rob Rosenthal, director of Revolution Populi. said.
Can eliminate the risk of Robinhood
The liquidity issue affected Robinhood users last month. Robinhood, who could not provide enough money, had to stop buying for shares such as GameStop.
It is thought that this problem experienced in Robinhood can also be encountered in crypto money exchanges. “Crypto brokers and exchanges have to take action against the liquidity problem Robinhood is experiencing,” said JPMorgan manager. said.