Robert Collins Jr., popularly called “Bo”, a former president of the New York Mercantile Exchange (NYMEX) is set to launch a new institutional crypto exchange platform. This new platform is being designed to target broker-dealers and institutional investors/traders in the cryptocurrency market.
The proposed plan seems at least on the surface of it to be a candidate that will offer strong competition to the existing cryptocurrency exchange platforms. This competition is likely to be for the patronage of institutional investors due to the caliber of crypto trading services that Bo’s proposed platform is looking to offer.
Bo Collins was the president of NYMEX between the 2001 and 2004. During his time at NYMEX, he was credited for overseeing the move from open outcry to electronic trading. This transition paved the way for ClearPort, a centralized clearing service.
The platform is going to be called the San Juan Mercantile Exchange and it is expected to be launched in October 2018. The platform will utilize proprietary software that is capable of handling up to 1.5 million transactions per second (TPS).
This puts it above the transaction handling capability of Binance, which is the largest cryptocurrency exchange platform in terms of trading volume. Binance reportedly processes about 1.4 million TPS.
The San Juan Mercantile Exchange is planning to not offer support for tokens that the United States Commodity Futures Trading Commission (CFTC) has classified as securities. Speaking on the matter, Bo Collins said that the platform will stick only to digital currencies like bitcoin and ripple.
The proposed headquarters for the platform is in Chicago.As part of the proposed plan for the exchange platform, Bo Collins also wants to open the San Juan Mercantile Bank and Trust in San Juan, Puerto Rico.
The banks will hold US dollar deposits of members and it will be connected to the exchange platform so as to offer faster processing of transactions. The bank will be regulated by both the US Department of Treasury and the Puerto Rican Commissioner of Financial Institutions.
One of the more profound unique service propositions being offered by the proposed platform is the introduction of a level of reliability into the cryptocurrency trading market.
In a phone call interview with Bloomberg, Bo Collins spoke of how cryptocurrency exchange platforms like Coinbase, Kraken, and Binance struggle to achieve any tangible feeling of security as far as their services are concerned.
He spoke about the frequent hacks and crashes suffered by these exchanges and the lack of investor confidence caused by these unfavorable conditions.
According to Bo Collins, from a fiduciary standpoint, institutional investors have a hard time putting much trust in existing crypto exchange platforms.
As a result, the San Juan Mercantile Exchange will provide a robust platform that facilitates a large broker being able to transact in a safe secure trading environment administered by professionals.
Bo Collins is hoping to leverage the experience he gained from his time at NYMEX in order to succeed in the cryptocurrency market. He declared that his exchange platform has the potential to improve the adaptability of the blockchain and cryptocurrency industry to more mainstream financial needs.
Feature image by Liza Otchenashenko