Bitstamp, a major cryptocurrency exchange, has announced its goal to lead the way in offering derivatives trading services in Europe next year. Additionally, the exchange is planning to expand into different markets in Asia. The company is currently in talks to raise more funds for this expansion.
Jean-Baptiste Graftieaux, who is the respected Global CEO of Bitstamp, shared that the fundraising process began in late June. This effort was guided by the experience of Mike Novogratz’s firm, Galaxy Digital Holdings. With an ambitious approach, Bitstamp plans to use the raised funds strategically to expand its services in Europe and Asia.
Amplifying Presence: Derivatives Trading Services in Focus
Bitstamp’s plan includes introducing cryptocurrency derivatives trading in Europe next year. At the same time, the exchange is focusing on expanding into several Asian markets. One significant strategy is to improve its operations in the United Kingdom. Graftieaux, the CEO, commented on this crucial step.
“Bitstamp is not for sale, and we are not actively looking to sell the company. Our current and exclusive priority is to raise money through strategic investors to accelerate Bitstamp’s growth by providing new products and services to retail and institutional crypto customers.”
It’s important to note that Galaxy Digital has previously advised Pantera Capital. This year, there was an interesting development: Pantera sold its minority stake to Ripple.
Bitstamp’s Market Dynamics and Growth Strategy
Bitstamp established itself in 2011, operating from Luxembourg. It played a significant role in the world of Bitcoin trading platforms, competing strongly with Mt. Gox. Over time, it rose to become the seventh-largest global exchange. It now boasts a substantial trading volume of around $126 million within a single day, as confirmed by data from Coinmarketcap.com. Noteworthy is the acquisition of Bitstamp by European investment firm NXHM in 2018.
Moreover, Bitstamp possesses the valuable BitLicense, a crucial license that allows its American division, Bitstamp USA, to operate effortlessly in New York state. Acquiring this license has played a vital role in maintaining the exchange’s strong presence in the United States. As the year progressed, Bitstamp’s market share increased significantly, while competitors like Binance US experienced a decrease in influence.
As the popularity of crypto derivatives grows, more and more participants are entering the field to claim their share. This is particularly evident after the downfall of the massive crypto exchange FTX, which used to be a dominant force alongside the renowned Binance. Notable players in the industry, such as Gemini and Coinbase, also introduced their derivatives trading platforms on the global stage earlier in the same year.
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