The Chip Maker

NVIDIA (US: NDVA) is a name more familiar to gamers than traders, selling computer chips – Graphic Processing Units or GPUs – to improve the system’s gaming performance. With a new boom, however, comes a new use.

Cryptocurrency miners – most notably in Bitcoin – have assembled vast computing systems that allow them to run the countless millions of calculations needed to mine a Bitcoin, maximising the potential to harvest one. As the number of calculations needed grows exponentially, so does the need for the chips enabling the process. Furthermore, there may be room for demand to grow. As other cryptocurrencies like Ethereum and Ripple gain further prominence, crypto mining has continued its meteoric rise. How much more demand could there be?

The Platform

To trade a cryptocurrency, you will need access to a form of wallet and a platform to trade the currencies. As investors experiment with the vast range of offerings available, the most successful and accessible have outperformed rivals. Of publicly-traded companies offering cash platforms, Square (US: SQ) is most intriguing.

The company, the second founded by Twitter CEO Jack Dorsey, saw shares rally 155% in 2017, accelerating later in the year after announcing that clients would be able to purchase Bitcoin on the company’s cash app. The company prides itself on being a disrupter and an early adopter of new technologies, and whilst the current Bitcoin offering is just a trial, it leaves Square with potential to grow into a much larger role within cryptocurrency transactions. This potential has placed it on the radar of those looking for crypto exposure.

The Cryptocurrency Trader

It will come as no surprise to many that Goldman Sachs (US: GS) has been one of the first major global financial institutions to set up a cryptocurrency trading desk. The investment bank, which prides itself on forward thinking, is looking to seize upon the cryptocurrency boom to offset weaker trading in traditional markets.

Goldman’s move to create a cryptocurrency trading desk – reportedly starting trading by end-June, is seen as the embodiment of growing institutional acceptance of the fledgling market, and could be mirrored by its peers.

The Tech Trailblazer

While Goldman Sachs may be trading cryptocurrencies, other banks are taking an entirely different approach.

A consortium of major institutions, including the UK’s Barclays (UK: BARC), has begun trialling how crypto technology can be used to guide institutions through the vast MiFID II financial regulations that have come into force in 2018. Alongside UBS, Credit Suisse and Reuters, Barclays is investigating how Ethereum smart contracts can improve data quality and simplify processes. Will the study result in further exploration into crypto tech?

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