CNN: SecondMarket to launch first New York-based Bitcoin exchangeSubmitted by MMJ Ministry on Tue, 02/25/2014 - 14:08
FORTUNE -- SecondMarket is spinning out its Bitcoin activities into a stand-alone company that eventually will include a New York-based exchange for the cryptocurrency, Fortune has learned. The move comes just as news is breaking that one of the world's most popular Bitcoin exchanges, Mount Gox, may be shutting down after a hack that has cost its users more than $400 million.
SecondMarket CEO Barry Silbert says that he's modeling it after the early days of The IntercontinentalExchange (ICE), and that he hopes to have a set of founding members in place by the end of March (i.e., a "seat" model). These members are expected to include Wall Street banks and well-funded Bitcoin startups (think Circle and Coinbase). Non-member firms or individuals would not be allowed to trade -- at least at the outset -- but likely could do business via the member firms.
Silbert is expected to serve as CEO of the new company,