Square Abandons Public Exchanges To Trade Bitcoin On OTC Platforms
The representatives of the Square payment operator informed in a recent report that transactions of bitcoin users in the Cash App are made not through public exchanges but mainly using OTC-platforms and private trading intermediaries.
According to the report, the company uses this approach to protect customers from the high volatility of cryptos as many trading platforms demonstrated bitcoin's price hikes due to the huge market participants’ actions.
Meltem Demirors, the director of the company's digital currencies development, claims that the cooperation with private brokers increases confidentiality and allows to make cryptocurrency trading more efficient than the method of placing orders on public trading platforms.
Bitcoin operations on Square are faster and more successful, and information about the company's activities is not available to competitors. Also, according to the company's representatives, this business model allows to protect the site from cyber attacks and hacking.
Bitcoins can be purchased not only on crypto exchanges and over-the-counter sites, but also at ATMs, with the help of gift cards or with personal agreement with a seller — through P2P format. There are also bitcoin investment funds, which allow investors to gain profit from cryptos without actually buying them.