Institutional Exchange Seed CX Dramatically Changes Business Model

06/12/2020

Alex Kondratyuk

Based in Chicagothe Seed CX marketplace will close the exchange business and focus on developing the settlement infrastructure. Trading will end today, June 12th. This was announced by the head of the company Edward Woodford.

Seed CX made an emphasis on settlement services earlier this year because it was unable to attract sufficient liquidity to compete with other major US platforms.

According to Seed CX, settlement infrastructure has recently brought in 95% of revenue, although initially this area was positioned as an additional service in relation to the exchange business.

According to The Block, at the beginning of the year, the average daily turnover of Seed CX was $ 4-8 million, while on Coinbase Pro this figure exceeded $ 240 million.

In general, over the past nine months, the cryptocurrency market has seen a drop in spot trading volumes:

Dynamics of trading volumes on popular spot exchanges. Source: The Block.

Recall that last summer Seed CX received a BitLicense, which allows it to operate in New York. Around the same time, the Chicago exchange began testing deliverable bitcoin swaps.