Monitors show prices of cryptocurrencies at crypto exchange Bithumb. (Bithumb)
South Korean cryptocurrency exchange Bithumb said Monday that it had signed a memorandum of understanding with Chinese crypto exchange firm BitMax to roll out new crypto services and to tap into global markets together.
They also agreed to jointly develop blockchain and cryptocurrency technologies and infrastructure.
Founded in 2018 by CEO George Chao, Bitmax has attracted a number of Wall Street financial engineers who used to work for global financial firms, such as Barclays and Deutsche Bank.
The Chinese firm is among the top 15 global exchanges in the world in terms of liquidity, according to crypto data firm CoinMarketCap. The liquidity index gauges how easily an asset can be bought or sold, and it is considered more accurate when evaluating the level of trading activity than trading volume, which can be easily manipulated.
While serving as a platform for investors to trade digital coins, the Chinese crypto exchange also sells derivatives based on price fluctuations of tokens.
The latest agreement will help catapult the Korean crypto exchange into the top echelon of the global crypto market, according to the local exchange.
“Bithumb will be able to get business ideas and know-how from Wall Street experts through the latest strategic partnership,” said a Bithumb official. “It will also keep trying to beef up its R&D capabilities and nurture the local blockchain market.”
By Kim Young-won (firstname.lastname@example.org