The leading cryptocurrency trading platform in the USA – Coinbase – announced the closure of its trading arm in Chicago, which entailed layoffs.
The Chicago office called Coinbase Markets was focused on such services as high-frequency trading and matching engines, and it could become one more source of income for the company on the development of this area.
However, the company representative stated that the exchange targets cooperation with financial organizations, including hedge funds, family businesses, while the area covered by Coinbase Markets seems to be no longer in the priority list.
According to the news reports, Coinbase intends to pool the high-frequency trading matching engines at its division in San Francisco. It will also be closed 30 engineering positions, though some of them will move to other offices, with the rest to work on a remote basis.
The high-frequency trading is said to be of controversial nature in the market, though it plays a certain role in the stock and futures markets in the USA. There are some assessments showing that this activity can bring practically 50% of daily trading volume at the exchanges. At the same time, traditional investors are more careful citing that such companies just steal income of other players.
Despite this move, Coinbase keeps looking for new employees in other offices. For example, the company's staff amounted to some 600 employees as of end-2018.
It was reported earlier that the company unveiled its plans to expand the business to another 11 countries covering Latin America and SE Asia.