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Cryptocurrency ‘Exchange of Exchanges’ ShortHop Expands to 7 US States

August 26, 2019 at 1:26 PM | By Jit Sutradhar News

ShortHop, an “exchange of exchanges” for cryptocurrency trading, was launched in seven additional US states.

Revealed exclusively for CoinDesk, the exchange and brokerage have been opened for business in Indiana, Massachusetts, Nevada, New Jersey, Rhode Island, Arizona and Montana. ShortHop, based in Wilmington, Delaware, already lived in California, Washington and Illinois.

Although the parent company of the exchange, the technology provider Velocity Markets, is registered as a monetary services company (MSB) in the Financial Crime Execution Network (FinCEN), ShortHop had to apply for money transmitter licenses in each state where it operates. The company also expects to obtain a license in Utah and Pennsylvania next week.

As a “cash filler market,” ShortHop allows customers to transact digital asset listings from multiple order books on one screen in addition to their own orders to provide customers with the lowest price, said Velocity CEO Markets, Jonathan Kelfer.

“It’s possible that when I go to Binance, the bitcoin spot price is the quoted price. When you go to Gemini, it’s also the quoted price,” Kelfer said, by way of example. “We will use it together to get the best price in the entire ecosystem.”

In this way, the company’s model resembles those of Voyager and Fidelity Digital Asset Services, which act as brokers, helping customers find the best deals in a highly fragmented market. The difference is that ShortHop also has its own exchange.

“ShortHop is a first spot market, but we are adding liquidity throughout the ecosystem,” Kelfer said, adding that the service is currently connected to a total of eight OTC exchanges and desks.

Organic ShortHop orders are treated like any other order in the market, but “the more orders, the better the price,” Kelfer said.

Skipping between assets

Kelfer founded the company in the first part of the initial coin supply (ICO) boom, seeing the need for reliable US exchanges.

“It was my perspective that there was no presence in the United States where people could base these assets reliably,” Kelfer said. “I really had to enter some Chinese exchange, because the US exchanges did not list most of these tokens.”

Currently, ShortHop only lists some of the main cryptocurrencies. Users can acquire and exchange bitcoin, ether, litecoin, bitcoin cash, XRP and stellar lumens (XLM). ShortHop also allows customers to “jump” between these assets without having to go through multiple conversions in different exchanges. Its technology achieves this by cross-ordering books to create synthetic pairs.

Velocity Markets is also building a digital exchange of values. It has a stockbroker with the legal name of Distributed Technology Markets that has an alternative trading system form in the files of the US Securities and Exchange Commission. UU. The company will use the broker’s license to allow the digital exchange of securities, but will not disclose when it plans to launch.

At this time, new users on the ShortHop platform receive $ 25 in bitcoins for registering. The platform currently has no fees, and Kelfer plans to subsidize retail users by offering a complementary service to institutions that wish to connect to the exchange’s capabilities.

“We would prefer to do this before retail users who should have access to the same quality of infrastructure as the big players,” Kelfer said. “That doesn’t mean we won’t charge fees in the future.”

Jonathan Kelfer image via Velocity Markets

This article is republished from coindesk.com. If you have any questions, objection or any other matter you can contact us. Thank you for visiting our website.

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