OKCoin has recently announced a new feature that caters to institutional clients. This feature is set to target corporate and global institutional clients. This makes OKCoin the first Bitcoin exchange to empower institutional clients with greater control over their trading strategies.
The announcement was made on OKCoin’s Tumblr blog, dated 31 March, 2015 [time of writing].
OKCoin Institutional Clients: Use Case
The use case that OKCoin has taken as an example in their blogpost is that of an institutional client as one master parent entity, which can run multiple strategies ranging from future trading to margin trading. All of which is handled in separate sub-accounts by the master parent entity.
Institutional Clients – a lucrative market for OKCoin
Institutional clients include various sections of the financial industry, specifically the financial services industry. Increasingly seemingly integrated, diversified, large institutional clients are undertaking interfirm dealing. Investment banking and securities trading are other sets of active institutional clients that might find this feature from OKCoin lucrative, as this provides greater control and flexibility on the dealing firm’s part.
Scope of the feature and risks
This new feature has scope that can include individual traders as well as seasoned institutional investors, as it is usually assumed that these clients are better informed about the risks associated with their investment choices. Traditionally the institutional client services have focused on equity, fixed income, commodities and currencies. OKCoin’s sub-account feature now makes Bitcoin investing/trading for institutional clients a lucrative option for the adventurous investors, who understand the risk and the volatility of this market.
Potential Clientele that Bitcoin Community can now attract
Bigger Picture: Bitcoin Community
With this feature set, OKCoin now has laid the red carpet for the institutional investors and clients to enter the Bitcoin community hall. It would be a great advantage for the Bitcoin community to have the seasoned big guys like pension funds, mutual funds, insurance companies, investment banks, hedge fund and hedge fund investors to look at Bitcoin as a financial instrument.