Digital Currency

Like it or leave it, Digital Currency is here to stay -- in one shape, manner or another. The controversial technology serves many purposes which can alter the future of banking, processing and currency, alike. It all originated with bitcoin – but what exactly is bitcoin?

As defined in Goldman Sach’s Global Investment Research– dated March 11, 2014, Bitcoin is a decentralized, peer-to-peer network that allows for the proof and transfer of ownership without the need for a trusted third party. The unit of the network is bitcoin (with a little “b”), or BTC, which many consider a currency or internet cash. The bitcoin network was conceived in 2008 and launched in 2009 by a programmer(s) who used the pseudonym Satoshi Nakamoto and whose identity remains uncertain.

The network is based on a mathematical proof; people around the world called “miners” use software programs that follow a mathematical formula to produce bitcoins. The formula and software are freely available for anyone to use. There is a finite amount of bitcoins that can be produced and as more bitcoins are created, the mathematical computations required to create more become increasingly difficult. Bitcoin can be traded or used to buy goods and services. All bitcoin transactions are recorded in the “block chain” -- a massive and transparent ledger of each and every bitcoin transaction maintained by the miners. There is no central authority that oversees bitcoin.

Realizing that the fundamental components of trading Digital Currency mimic the attributes of trading other asset classes, the community immediately solicited the expertise of many Financial Information eXchange (FIX) protocol network providers – like Marco Polo.

It became evident to the Digital Currency community, that in order for the currency or commodity (still debated) to take form, it had to be legitimized by the participation of financial institutions and banks. But in order for this to occur, Digital Currency providers would have to adapt to the universal and ubiquitous FIX protocol.

Enter Marco Polo, a leading provider of FIX infrastructure, electronic Trading Solutionss, network connectivity and matching engines for many Foreign Exchange (FX), equity and now Digital Currency exchanges/ brokers. Marco Polo’s Digital Currency offering provides firms with the following:

As Digital Currency continues to evolve, Marco Polo will continue to provide the community with tools to better execute, monitor and ensure the integrity of such transactions.

Foreign Exchange
Fixed Income
US Execution
Order Routing
Trading Solutions
Infrastructure Services