Bahamas based online broker dealer, Trade-Zero, launched the world’s first “dark pool” exchange for bitcoin to enable corporate shareholders to enforce big transactions. In the course of time the company will open the exchange to other digital currencies such as ether and Litecoin (LTC). TradeZero has partnered with Jered Kenna, one of the earliest bitcoin shareholders and founder of the now defunct bitcoin exchange called Tradehill, for the venture. Dark pools refer to trading outside the exchange done by large institutional investors. Off-exchange trading can make up about 40 percent of all U.S. stock trades.
Daniel Pipitone, director of TradeZero said they are looking to provide the non-U.S. investor with the same access, tools and discounted commission structure that many U.S. traders enjoy today.
Pipitone said “there is currently a required minimum opening balance of $10,000 to be able to trade on the dark pool exchange”. The company will allow customers to get access commission-free dark pool digital currency trading, allowing them to make large purchases or sales without substantially moving the market price. TradeZero already allows commission-free stock and ETF trading, as well as equity and index options. If you want to see larger players moving in to do larger trades in bitcoin without upsetting the market, a dark pool is necessary, bitcoin entrepreneur said Kenna, he think it will bring a lot of stability in the market as well.
Kenna launched TradeHill in the early days of bitcoin, the exchange offered a dark pool, but the company was never able to fund a bank to act as custodian for the fiat currencies, dollars and euro, arising from the bitcoin trades. Kenna was one of the earliest and larger holders of bitcoin. His initial purchase of 5,000 coins was for 20 cents each TradeZero will use a pre-existing bank for the fiat currencies, but Kenna declined to disclose the name of the financial institution.