Exclusive: Crypto Exchange Bitstamp Announces US Expansion After 281% Surge In Q1
The world’s longest-running crypto exchange Bitstamp announced a deeper expansion in the U.S. market after reporting a 570% increase in new customer growth this year.
What Happened: The U.K.-based exchange was established in 2011, and with around $1 billion in daily trading volume remains one of the largest crypto exchanges globally.
The decision to prioritize the U.S market came after the exchange recorded a 281% increase in assets under management during the first quarter of 2021, along with a number of key growth metrics, Bitstamp told Benzinga in an exclusive press release.
“Bitstamp is prioritizing U.S investors, in a market primed for disruption and growth,” said a spokesperson in reference to the exchange’s uptick in client activity which increased on a monthly level by 348%.
As part of its expansion plan, the exchange plans to grow its customer support team by 50 percent this year, in addition to launching a marketing campaign to educate more retail investors about crypto.
Bitstamp said it would also scale up operations on the institutional side through its partnership with Silvergate Capital Corporation (NYSE:SI). The partnership gave rise to SEN Leverage, a product that allows institutional customers to trade any asset on platform with leverage collateralized by Bitcoin or U.S. dollars, which had originated over $50 million in loans as of April 2021.
The exchange believes over $250 million such loans can be originated by the end of the year.
Why It Matters: After the success of Coinbase Global Inc (NASDAQ:COIN), crypto exchanges worldwide have targeted the U.S. as a crucial area to expand operations.
“Crypto is the fastest-growing segment of financial services and we intend to be a leader in the most competitive financial market in the world: the U.S., said Bitstamp’s CEO, Julian Sawyer.
At press time, the market-leading cryptocurrency was trading at $58,626, adding over $2,000 to its price overnight.
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