Susquehanna International Group may not have the some kind of name recognition as Goldman Sachs, but they may be one of the best established traders of cryptos in the world of mainstream finance. They recently announced they would be expanding their cryptocurrency trading operations as well as widening the number of products they offer their clients.
Most know Susquehanna as a trading operation that has offices across the globe, but their experience with cryptos stretches back to 2014 when the Winklevoss twins approached them to help out on an ill-fated attempt to launch a Bitcoin ETF. While the ETF was shot down by US regulators, Susquehanna kept their crypto desk open.
Now they have over a dozen people who are full-time crypto traders, and unlike many other companies, they actually deal directly with cryptos. The recently announced expansion will see 500 more clients gain access to their crypto trading services, which are estimated to run into the millions of dollars on a daily basis.
With the advent of Bitcoin futures that trade on regulated exchanges in the US, Susquehanna has been able to widen the kinds of crypto investments it offers. Like Goldman, they will be brokering cash-settled futures, but they will also offer their clients direct purchases of Bitcoin, Bitcoin Cash, and Ethereum.
Due to the risk involved with taking possession of cryptocurrency, Susquehanna has developed offline storage procedures to ensure the safety of their client’s holdings. They use a storage system for any cryptos they plan to hold for more than a day and don’t allow direct access from publicly available servers to the machines that store sensitive information.
It might not be a repurposed military facility in the Swiss mountains, but it is sure a step up from a many of the other exchanges.
A Growing Industry
The head of Susquehanna’s digital asset group, Bart Smith, had this to say on the expanded services: “We believe that this technology and this asset class is going to change some facet of financial services, and we think it is going to exist forever.”
There certainly has been a lot more interest coming from the mainstream financial community over the last few months. Not only is Goldman Sachs in the process of offering Bitcoin exposure to their clients, but the New York Stock Exchange is considering opening up cryptocurrency trading.
While banks and trading companies are working to broaden their crypto-related services, regulators are working to figure out where cryptos fit into US law. So far the debate is open, and there are ongoing inquires by numerous regulatory bodies across the US and globally.