SeedCX has recently announced a bittersweet moment in their operations. Effective June 12th, the company has ceased offering exchange services. While this may seem like a step backwards, the move is being made due to the success, and popularity, of their settlement services.
“We are announcing that we are shutting our exchange and fully focusing on our settlement infrastructure.”
No word was given on the status, or removal, of applications to become a registered broker/dealer with the SEC and FINRA. This title would have given SeedCX the ability to trade, and custody, digital securities.
The Lions Share
The reasoning for this announced move is a simple one. SeedCX indicates that over the past 12 months, their settlement services, known as ‘Zero Hash’, have grown to comprise the lion’s share of the company’s revenue.
“Our settlement business now accounts for over 95% of our revenue. As we begin to look beyond just profitability (we are on course for profitability in 2020), to realizing our ambition of becoming the leading digital asset settlement infrastructure, we have to become more focused.”
It is clear that this isn’t a sign of defeat, but rather doubling down on what works – and right now, that is Zero Hash.
Moving forward, SeedCX states that their new focus on Zero Hash will see an emphasis on both, regulatory and technical, hurdles surrounding settlement services. The following is a brief excerpt from their announcement.
“Regulatory: We act as a gateway for groups to access US customers. Through our API, platforms can own the complete client experience whilst not taking on any regulatory overhead. This is similar to how “Banking as a Service” (BAAS) provides access to traditional rails.
Technical: We provide the complete automated settlement infrastructure, supporting over 600 transaction pairs. Zero Hash enables groups to submit two-sided transactions, whether spot, derivatives or loans, and handles the end-to-end complexity from interacting with a blockchain to greater capital efficiency through netting.”
Founded in 2015, SeedCX maintains headquarters in Chicago, Illinois. Above all, SeedCX works to develop and provide services surrounding the growing digital assets industry. This now includes a primary focus on settlement services known as ‘Zero Hash’.
CEO, Edward Woodford, currently oversees company operations.
In Other News
In recent months, SeedCX is not the only outfit to have an increased focus on settlement services. We recently touched on news of new research being undertaken by the DTCC; Research which will determine the viability of DLT when used to underpin settlement services.