BGC Partners CEO Howard Lutnick said that the firm would build a crypto exchange.
The exchange is expected to launch in Q1, 2023.
Institutional interest in crypto appears to be on the rise again, and bitcoin is proving attractive at its current price.
Wholesale brokerage firm BGC Partners has announced that it will build a cryptocurrency exchange. The firm’s Chief Executive Officer Howard Lutnick said on June 8 that the exchange is aiming for a launch in Q1, 2023. Lutnick revealed the development at a financial industry conference in
BGC Partners is a New York City-based firm that offers a variety of financial products, including equities, commercial real estate, and commodities. The addition of crypto to the lineup is a sign of how quickly crypto is becoming a part of the mainstream financial industry.
Lutnick also said that he was optimistic about the firm offering crypto services and went so far as to say that it could compete with some existing major crypto exchanges. He cited technology and the speed of BGC’s platforms as being two reasons why it would be competitive.
This isn’t BGC’s Partners’ first foray into cryptocurrency. It executed its first-ever block trade of micro bitcoin options offered by the CME Group through the Sunrise brand. In a press release published in early April 2022, it said that it
“has been active in multiple segments of the digital marketplace, successfully arranging transactions in options on multiple listed ETFs, options on CME Group listed Bitcoin futures, and options on CME Group listed Micro Bitcoin futures.”
BGC’s Co-Global Head of Brokerage, John Abularrage, said at the time that it was “an important step in the evolution of a marketplace searching for a regulated crypto space.” Clearly, the firm is intent on making the most of the new technology.
More Institutions Want a Piece of the Crypto Pie
There has been a flurry of activity in the broader financial world with respect to crypto developments. An increasing number of established firms want to provide services related to crypto or are at least considering it. This has happened despite the sharp downturn in the market recently and is a sign that the overall forecast is optimistic.
Institutional buys might be on the rise as they see bitcoin being at an undervalued price. Coinbase saw a lot of bitcoin outflows in the past few months, which might indicate growing institutional interest.
Then there’s MicroStrategy CEO Michael Saylor, who is as bullish as ever. Saylor recently said that the regulation that U.S. lawmakers are working will be in bitcoin’s favor, as it provides regulatory clarity.