In February Bitcoin Publication reported that Crypto Facilities Ltd., a London-based broker established by previous Goldman Sachs Executive Director Timo Schlaefer, had announced the launch of its bitcoin derivatives trading platform.
The Crypto Facilities platform is trading bitcoin forwards, which are straight connected to the price of bitcoin, but also establishing other digital currency derivative products.
“This is uncharted territory,” said Schlaefer as reported by Reuters. “It’s an amazing opportunity to get involved in a new location of innovation that has enormous capacity.”
Wall Street and Bitcoin used to be entirely separated and incompatible worlds, now there is a growing number of interpenetration and skill exchange in between the 2 worlds. Recently Santander InnoVentures and other financial companies launched a call to action to banks, monetary organizations and financial technology companies to collaborate to reboot the banking and monetary services industry.
While experienced financial specialists like Schlaefer are founding or signing up with Bitcoin start-ups, banks and Wall Street companies are fishing for top skill in Bitcoin waters, Reuters reports. In June, online bitcoin task ads rose to a record high of 306.
Reuters notes that Schlaefer probably would make more cash at Goldman, however exactly what attracts him and other migrants from Wall Street is the ability to be part of the growth in Bitcoin and its hidden blockchain technology.
“A lot of people are getting in the Bitcoin space as the sector has actually reached a general level of financing that’s hard to ignore,” said Coinsetter creator and CEO Jaron Lukasiewicz, who moved to the Bitcoin world in late 2012 from personal equity firm The CapStreet Group.
Total financial investments in Bitcoin companies for 2015– totaling $ 375.4 million in the first six months– have actually already exceeded 2014’s total of $ 339.4 million. According to Tomasz Tunguz, a partner at venture capital company Redpoint, Bitcoin is the fastest growing area of start-up financial investment in 2015, however it is still reasonably underfunded, which makes it an ideal financial investment target for investor and institutional players alike.
In fact, as just recently reported by Bitcoin Publication, significant monetary gamers such as Citi, UBS and Barclays are exploring the blockchain, while a BNP Paribas expert is persuaded that the blockchain could change finance. According to the Santander Innoventures report “The Fintech 2.0 Paper: Rebooting monetary services,” blockchain-based innovation might conserve banks $ 20 billion per year by 2022.
Other leading monetary experts who made the jump to Bitcoin discussed in the Reuters short article are Paul Chou, founder and president of Ledger X (previously at Goldman Sachs), and Henri Chan, chief operating officer at digital wallet platform Airbitz (formerly at Deutsche Bank, UBS and Morgan Stanley).
Previous JPMorgan Chase & & Co. executive Blythe Masters, the developer of the modern credit default swap, (a derivative used to trade credit risks), who now heads blockchain business Digital Asset Holdings, is not discussed in the Reuters post but is most likely the very best known financial heavyweight now active in the blockchain space. At the recent Exponential Finance 2015 conference in New york city, Masters stated that the market for financial blockchain applications ultimately will be determined in the trillions.
“How seriously must you take [the blockchain]” Masters asked. “About as seriously as you need to have taken the concept of the Internet in the early 1990s. It’s a big deal.”
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