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Peter Thiel Backs New Blockchain-Based Crypto Exchange that Some View as Coinbase Competitor

·2 min read
©Roger Askew/REX/Shutterstock
©Roger Askew/REX/Shutterstock

Blockchain company Block.one, which has been backed by prominent investors such as billionaire Peter Thiel, announced it will launch a new blockchain-based crypto exchange that experts view as a potential competitor to Coinbase.

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The newly formed arm, Bullish Global, has been capitalized with more than $10 billion in cash and digital assets following an initial injection by Block.one of $100 million, 164,000 Bitcoin and 20 million EOS, and through the completion of an additional $300 million strategic investment round, according to a press release.

“Bullish’s balance sheet is strong, and its vertical integration offers stability and liquidity to the cryptocurrency space. I’m happy to join Bullish as an investor and advisor as it gets started on a long and fruitful journey,” Thiel said in the statement.

Bloomberg reports that the price of EOS surged almost 50% following the announcement to around $12.72, according to CoinMarketCap data.

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Additional prominent investors include Alan Howard, Louis Bacon, Richard Li, Christian Angermayer, Michael Novogratz’s Galaxy Digital and global investment bank Nomura.

The new crypto exchange aims to combine the performance, user privacy and compliance offered by central order book technology with the vertically integrated user benefits of decentralized finance (DeFi) market architecture, according to the statement.

“The Bullish exchange will offer new automated market making, lending, and portfolio management tools to its users to deliver functionality that has previously been monopolized by incumbent players in traditional finance, while driving deeper liquidity to digital assets,” according to the statement.

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“The cryptocurrency market continues to benefit from institutional adoption, and Bullish is well positioned to leverage blockchain-based market structures that will play an important role in further improving access for institutional and retail investors,” Louis Bacon, chairman and principal investment manager of Moore Capital Management, said in the statement.

Coinbase, which had a blockbuster IPO in April, will release its first earnings today.

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This article originally appeared on GOBankingRates.com: Peter Thiel Backs New Blockchain-Based Crypto Exchange that Some View as Coinbase Competitor