US-based company Square reported that they had changed the bitcoin trading scheme. For now, the company trades bitcoin via private broker-dealers and does not need the services of the public crypto trading platforms for the Cash application.
Many Square clients became able to trade bitcoin early this year. For now, this has brought neither losses nor fruits. The company stated that the crypto trading generated just $400,000 income over Q1-Q2.
Notably, the new changes were mentioned only in the quarterly report, with no public statements made on this issue.
"Working with a broker likely gets Square better pricing and better execution services than floating orders on the open market, as well as more confidentiality," a market analyst stated.
The players believe that this decision can be driven by different factors, including their intention to avoid the rate fluctuations. Specifically, public exchanges very often record high rate volatility – a large order on such platform can summon price hikes in a short period of time. Moreover, it is also possible that the company wants to prevent possible hacks and security problems that are regularly seen on public exchanges. In addition, private and OCT companies provide faster processing of bitcoin transactions.