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

Mandatory Credit: Photo by Roger Askew/REX/Shutterstock (4735070a)Peter ThielPeter Thiel at the Oxford Union, Britain - 30 Apr 2015Peter Thiel, co-founder of Paypal, speaking about death and ageing.
©Roger Askew/REX/Shutterstock

Blockchain company, 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.

See: What Is Blockchain Technology?
Find: Six Best Blockchain Stocks to Buy Right Now

The newly formed arm, Bullish Global, has been capitalized with more than $10 billion in cash and digital assets following an initial injection by 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.

See: 10 Cheap Cryptocurrencies to Check Out
Find: Banks Might Treat Bitcoin Like ‘Real Money’ – These Experts Weigh the Pros and Cons

Building Wealth

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.

See: 4 Best Places To Buy and Sell Cryptocurrency
Find: 5 Buzzy Companies Going Public in 2021 That Might Make You Rich

“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.

Building Wealth

More From GOBankingRates

Share this article:

Building Wealth

About the Author

Yaël Bizouati-Kennedy is a full-time financial journalist and has written for several publications, including Dow Jones, The Financial Times Group, Bloomberg and Business Insider. She also worked as a vice president/senior content writer for major NYC-based financial companies, including New York Life and MSCI. Yaël is now freelancing and most recently, she co-authored  the book “Blockchain for Medical Research: Accelerating Trust in Healthcare,” with Dr. Sean Manion. (CRC Press, April 2020) She holds two master’s degrees, including one in Journalism from New York University and one in Russian Studies from Université Toulouse-Jean Jaurès, France.
Learn More