- August 8, 2023
- Posted by: admin
- Category: BitCoin, Blockchain, Cryptocurrency, Investments
Luxumberg-based cryptocurrency exchange, Bitstamp is looking to expand its global presence by broadening its reach in the European and Asian Markets. According to an August 8 Bloomberg report, the crypto exchange is raising fresh funds to support its expansion goals in Europe and Asia while ramping up its UK operations.
Also, the exchange revealed plans to start derivatives trading in Europe next year. Jean-Baptiste Graftieaux, Bitstamp’s global CEO, said the exchange commenced the fundraising, led by crypto-focused venture capitalist Galaxy Digital Holdings, in late June.
Bitstamp Starts Raising Fresh Funds To Support Its Global Expansion Goals
Commenting on the development, the Bitstamp CEO said: “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,” he added.
Related Reading: How Twitter’s New Rebrand Will Impact the Creator Economy
As one of the oldest cryptocurrency exchanges, founded in 2011 when crypto was still new to many, Bitstamp was one of the primary trading platforms for Bitcoin.
The crypto exchange was an alternative to the now-defunct Mt. Gox, the once-dominant Bitcoin exchange. According to CoinMarketCap data, the company boasts about $133 million in 24-hour trading volume and now ranks as the seventh-largest crypto exchange.
Considering its age, Bitstamp has waned in popularity. Therefore, the latest move could be seen as a strategy to expand its footprint in the crypto market while reclaiming a leadership position in the industry.
However, the exchange’s American unit, Bitstamp USA, has a valid operational license in the US known as BitLicense. This license allows the crypto exchange to operate in New York state. That makes the platform one of the regulated US-based exchanges, booming in traction amid the ongoing regulatory crackdown on exchanges.
Data from Kaiko also revealed that Bitstamp’s US market share increased in 2023, while top exchanges like Binance US and Coinbase declined.
More Exchanges Have Launched International Derivatives
Venturing into the crypto derivatives market could mark a major milestone for Bitstamp, as the derivatives space has been a booming sector eyed by exchanges. After the collapse of FTX, which once dominated the derivatives space, more crypto exchanges are venturing in.
Top exchanges like Binance, Coinbase Global Inc., and Gemini have all launched derivatives trading platforms. So this move by the exchange is now new.
In May, US-based cryptocurrency exchange, Coinbase, opened an international crypto derivatives exchange in Bermuda. According to the announcement, the move was part of Coinbase’s global expansion strategy amid a stiff regulatory environment in the US.
Also, New York-based Gemini exchange launched an offshore derivatives platform in May to serve 30 countries, including Hong Kong, Singapore, the Philippines, and Brazil.
Bitstamp’s expansion moves come as most crypto exchanges emerge from the 2022 winter. Most firms are now seeking new funds to strengthen their financial standing in preparation for the next bull run.
