Square Cash app trades BTC through private brokers instead of public exchanges

posted 11 months ago
Jack Dorsey’s Square Cash app recently published its quarterly report, revealing it’s channeling Bitcoin trades through private brokers instead of public exchanges: Square “purchases Bitcoin from private broker-dealers” to facilitate Bitcoin trades for users of the application.

Meltem Demirors, chief strategy officer at CoinShares told CNBC: 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. Secondly, the company could be looking to avoid some of the security issues and hacks associated with public cryptocurrency exchanges. Private brokers and OTC services may also be providing Square with faster Bitcoin transactions while at the same time hiding Square’s market activity from competitors. Potentially, the move also gives Square more visible compliance from its use of institutional style trading facilities. Square has yet to comment on the matter.
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